Buy JMC Projects, target price Rs 110: HDFC Securities

HDFC Securities has buy call on with a target price of Rs 110. The current market price of JMC Projects (India) Ltd. is Rs 76.35.

JMC Projects (India) Ltd., incorporated in the year 1986, is a Small Cap company (having a market cap of Rs 1281.12 Crore) operating in Construction sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1117 Crore, up 31.65 % from last quarter Total Income of Rs 848.43 Crore and up 14.92 % from last year same quarter Total Income of Rs 971.96 Crore. Company reported net profit after tax of Rs 8.25 Crore in latest quarter.

Investment Rationale
The brokerage reiterates BUY with an unchanged target price of Rs 110. It has cut FY21 estimate to incorporate the miss on margin in 3QFY21. Key risks: (1) delay in restructuring/monetisation of BOT assets and (2) increase in leverage.

Promoter/FII Holdings
Promoters held 67.7 per cent stake in the company as of Dec 30, 2020, while FIIs held 0.25 per cent, DIIs 16 per cent and public and others 15 per cent.