Shares of JMC Projects (India) rallied up to 20 per cent to Rs 60.40 apiece on the BSE on Wednesday after the company on Tuesday said it has secured new orders of Rs 938 crore.
At 09:32 am, the stock was trading 17 per cent higher at Rs 58.9 on the BSE. In comparison, the benchmark S&P BSE Sensex was ruling 0.39 per cent higher at 35,569.97 levels.
JMC Projects had hit a 52-week high of Rs 147 on June 26, 2019 while its 52-week low level stands at Rs 29.50, hit on March 23 this year. Its all-time high stands at Rs 150, which was hit on May 27, 2019.
In an exchange filing, JMC Projects said it has secured fresh orders worth Rs 938 crore, which includes Water Supply Projects in Uttar Pradesh totalling Rs 841 crore and Building Project in South India totalling Rs 97 crore.
“We are happy with the new order wins in the face of challenging market conditions. We continue to scale up our water business and have expanded our presence in Uttar Pradesh with the new order wins. We remain confident of significant growth opportunities in the Water business going forward," said S K Tripathi, CEO and Deputy Managing Director.
JMC is a subsidiary of Kalpataru Power Transmission and one of the leading civil engineering and engineering, procurement, construction (EPC) companies in India.
For the quarter ended March 2020, the company had posted net loss of Rs 54.76 crore against net profit of Rs 35.24 crore in the year-ago period. Sales declined 0.43 per cent to Rs 976.28 crore as against Rs 980.46 crore in the corresponding quarter of the previous fiscal. READ MORE
While maintaining a "BUY" rating on the stock with the target price of Rs 69, HDFC Securities in results review note dated May 22, had said that FY21 could be a turnaround year for the company. "Large part of building & factories (BF) order book nearly 85 per cent is in Southern India which remains better placed for real estate recovery. New opportunities are being explored in Africa from order booking perspective. Net debt has increased by Rs 1 bn YoY to Rs 7.8 bn and net D/E is 0.8x, which is a cause of concern but manageable. Free cash flow to equity (FCFE) for FY20 stood at Rs 425 mn," the brokerage said.
Meanwhile, delay in monetisation/resolution of BOT assets and Leverage, according to the brokerage, are the key risks.
Considering the Covid impact on topline and margins, YES Securities cut their estimates for FY21 and FY22. Also, with no near-term visibility on asset monetisation, it believes the company would need to support the subsidiaries which may be an overhang on the stock. However, "post the sharp correction in stock price, we maintain our BUY rating on the stock for revised target of Rs 50 (based on SOTP valuation)," the brokerage had written in a note issued on May 21.