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JKumar Infraprojects rises 10%; Citi initiates coverage with 'buy'

Updated : August 28, 2018 11:23 AM IST

Citi Research initiates coverage with “Buy” rating and target price of Rs 416.

Twelve of 13 brokerages covering the stock rate it “buy” or higher and 1 has “hold”; median price target is Rs 365.

JKumar Infraprojects rises 10%; Citi initiates coverage with 'buy'

Engineering and construction co JKumar Infraprojects Ltd rises nearly 10 percent to Rs 247.10.

Brokerage Citi Research initiates coverage with “Buy” rating and target price of Rs 416. On-time execution, a large equipment bank, little sub-contracting and backward integration have helped JKIL deliver industry leading EBITDA margins, says Citi.

The company’s end-FY18 backlog of about Rs 7700 crore ($1.10 billion) (3.6x sales) provides strong sales visibility, Citi adds.

“We believe it could annually win at least 30-40 bln rupees of orders in FY19-21E, providing plenty of orders for execution,” says Citi.

Twelve of 13 brokerages covering the stock rate it “buy” or higher and 1 has “hold”; median price target is Rs 365, according to Thomson Reuters Eikon data.

Stock had fallen 24.8 percent this year as of last close. Shares traded at Rs 247.10, spiking 9.97 percent at 11.11 am on the BSE. Intra-day, it touched a high of Rs 252.25 after opening at Rs 231.20.

Meanwhile, benchmark indexes continue to trade higher. The BSE Sensex traded at 38,850.19, rising by 156 points, or 0.40 percent, while the NSE Nifty 50 was at 11,739.65, up by 47.70 points, or 0.41 percent.

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