J Kumar Infra Q2 Results Review - Healthy Execution To Continue: Dolat Capital
Company witnessed strong execution in Q2 and remains optimistic on India growth; targets to become $1 bn revenue company by FY27.
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Dolat Capital Report
J Kumar Infraproject Ltd.’s result beat on all fronts, however Ebitda margin in line.
J Kumar posted 31.2%/ 32.4%/ 64.5% YoY growth in revenue/ Ebitda/adjusted profit after tax to Rs 10.1 billion/ Rs 1.5 billion / Rs 675 million in Q2 FY23.
We broadly maintain our revenue and Ebitda estimates for FY23E/ FY24E. However, we increase adjusted profit after tax estimates by 8.6%/ 9.7% for FY23E/ FY24E.
We introduce FY25E. J Kumar’s decent revenue growth (16.4% compound annual growth rate over FY22-25E) and Ebitda margin of 14.4%/ 14.4%/14.3% in FY23E/ FY24E/FY25E will lead to healthy 22.4% CAGR in its bottom line over FY22-25E.
We, therefore, expect average return on capital employed and return on equity to increase to 14.4%/ 13.0% for FY23E-25E from 12.3%/ 10.4% in FY22.
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