J Kumar Infra: Anand Rathi Sees Target Price of Rs 734
J Kumar Infraprojects Posts In-Line Performance in Q4FY26
In its latest research report, Anand Rathi's analysts have provided an update on J Kumar Infraprojects (JKIL), a leading infrastructure company. The report highlights the company's performance in Q4FY26, where revenue and EBITDA declined by approximately 4% and 7% year-over-year (y/y) to Rs15.7 billion and Rs2.2 billion, respectively. These figures are in line with the analysts' estimates of Rs15.6 billion and Rs2.2 billion.
The company's ability to manage its working capital (WC) and debt while maintaining a rangebound margin is a significant positive factor. Despite the decline in revenue and EBITDA, JKIL's prudent management has ensured that the company remains financially stable. With a record order book (OB) of approximately Rs250 billion and a robust pipeline, the analysts expect JKIL's revenue and earnings to grow at a compound annual growth rate (CAGR) of 13% over the period of FY26-28e.
| Metric | Actual (Q4FY26) | Estimate (Q4FY26) | Growth Rate |
|---|---|---|---|
| Revenue (Rs billion) | 15.7 | 15.6 | -4% |
| EBITDA (Rs billion) | 2.2 | 2.2 | -7% |
The analysts believe that the current valuation of JKIL fails to factor in the company's growth expectations. Over the past year, the stock has corrected by approximately 30%. Given this, the analysts maintain a BUY rating on JKIL with a revised target price of Rs734 (previously Rs770), valuing the company at 11x FY28e earnings per share (EPS).
Investor Takeaway
Investors should consider buying J Kumar Infra due to its growth expectations and undervaluation.
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