I expect JKIL to trade above Rs 1400 within next 2.5-3yrs (at a PE x of 15).
There is a high chance that given the accelerating growth rate, the entire construction sector gets re-rated in which case even a PE of 25-30x might be possible and JKIL can go above Rs 2800 per share. Now, obviously, this is not the base case we can assume today. But as the performance comes through and sceptics become more comfortable and eventually confident, the stock price can easily go past the levels that are difficult to imagine today but would be perfectly reasonable when viewed from a different lens, a lens based on facts reflected in the financial statements.
I guess that is what some of the best fund managers in the industry are seeing and have taken up sizeable position in the stock.
Mkt a slave of earnings. Sector having lot of tailwinds. JKIL executes nicely with lot of tunnel boring machines and marquee projects to its name . Best wealth created when both EPS N PE increases. discl invested and biased
Is it possible for a company to have fixed operating margin for years… J Kumar has 14% margin for 5 years (apart from covid year of 2021) - exact 14% every quarter. that too for construction companies where revenues are fluctuating based on project progress…
J kumar Infra will have a PAT of 700cr in FY27. At 15x forward PE JKIL should trade at a MCap of 10,500cr, or stick price of 1400. At current price of 780, it trades super cheap and provides a great oppo over the next 12 months.
As mentioned below, some of the marquee investors including Mukul Mahavir Agarwal n Dolly Khanna are already invested here.
