JMC Projects rallies over 13% after securing orders worth Rs 1,363 crore

With our order book of over Rs 11,400 crore and L1 of Rs 1,700 crore, we remain confident to deliver profitable growth for full-year FY21, said S K Tripathi, CEO.

JMC Projects shares advanced as much as 13.5 per cent to Rs 55 on the BSE on Wednesday after the engineering firm on Tuesday informed it has secured new orders worth Rs 1,363 crore.

In a filing to the BSE, the company said it has won Rs 1,169 crore building projects order in southern India; while in Bihar, it has won a water supply project of Rs 194 crore. READ MORE

"We are happy with the new order wins in the face of challenging market conditions. We continue to focus on scaling up our operations and improving our cost competitiveness. We are witnessing continuous improvements in operations and expect execution to normalise at pre-Covid levels by the end of Q2FY21. With our order book of over Rs 11,400 crore and L1 of Rs 1,700 crore, we remain confident to deliver positive and profitable growth for full-year FY21," said S K Tripathi, CEO, and Deputy Managing Director.  

JMC Projects (India) is a subsidiary of Kalpataru Power Transmission and one of the leading contracting companies in the country. 

Analysts at HDFC Securities, in its report dated May 22, had said FY21E will be the 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 the order booking perspective. Net debt has increased by Rs 1 billion year-on-year (YoY) to Rs 7.8 billion and net debt-to-equity ratio (D/E) is 0.8x, which is a cause of concern but manageable," the brokerage had said.  

Key risks include delay in monetisation/resolution of build-operate-transfer (BOT) assets; and leverage. It had maintained a "BUY" rating on the stock with the target price of Rs 69. 

At 10:26 AM, the stock was trading nearly 9 per cent higher at Rs 52.8. In comparison, the S&P BSE Sensex was trading 0.39 per cent lower at 38,257.34 levels.