Construction Sector
Important Note - Still Indian Markets are directionless and indecisive due to which any further market correction may bring some more pressure on all researched stocks mentioned in following sub-sections.
The market volatility situation is for short term duration and in long term the markets will recover as Indian companies are having good fundamentals and good growth prospects.
J Kumar Infraprojects Ltd
Returns
CMP - Rs 58.50.
Buying price - Below Rs.50 (It went down till Rs.35.20)
Returns - above 50% in next 2 to 3 years.
Taking into consideration Rs.35.20 as buying price following are the returns
138% Target acheived in month of 20 May 2009. It went high till Rs.84 (Updated - 22 May 2009)
About company
1. J Kumar is one such small construction company, which derives a majority of its revenues,
about 79 per cent, from the government, while the rest comes from private entities.
2. The company is well diversified in the construction space including road construction, irrigation
projects, flyover and bridges, airport and civil works and piling.
3. To a large extent, the improvement in the margins is on account of the growing business,
economies of scale and owned equipment.
4. Going forward, this business is likely to maintain its share, given than the company intends to
add 4 piling machines to its existing 11 machines.
5. The company has made efforts to move up the ladder and now intends to invest more for
purchasing equipment and enhance its working capital.
6. It also hopes to procure larger complex projects besides, enabling it to execute projects faster.
(Researched date - Oct 2008)
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Latest Updates
(17 Dec 2008)
J Kumar Infraprojects bags Rs 120 mn order
J Kumar Infraprojects has received Rs 120 million order from Essar Constructions (India) for piling works for 2X600 MW
power projects of Essar Power at Mahan, Sidhi district, Madhya Pradesh.
Following the above order, the order book position of the company, as at date, stands at about Rs 12.84 billion.
The company`s principal activity is of civil engineering construction contractors in infrastructural projects mainly in roads,
flyovers, bridges, commercial and residential buildings, sports complexes, irrigation projects, airport contracts.