Shares of J Kumar Infraprojects have been surging at the bourses thanks to a robust inflow of orders in the past year. The company’s order book has also impressed analysts at Axis Securities who see the stock continuing its bull run.

The J Kumar Infraprojects Analyst: The Uttam Kumar Srimal-led analyst team Axis Securities initiated coverage on the stock with a “buy” rating and a price target of ₹800. The target indicates around 30% upside from the current market price of around ₹612.

The J Kumar Infraprojects Thesis: The brokerage said that the infra major is positioned to capitalize on long-term structural changes in the infrastructure sector, driven by the government’s emphasis on development and emerging opportunities. The analysts also highlighted the company’s robust order book of around ₹16,774 crore as of December 31, 2023, which provides revenue visibility for 2-2.5 years.

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As per the analysts, the order book is well-diversified across various segments including Elevated Corridors & Flyovers, Roads & Road Tunnels, Elevated Metros, Underground Metros, Water projects, and Civil & other projects. This diversification enhances the company’s resilience and stability in the market, the analysts added in the note.

The analysts remarked that the company has established itself among the top 5 EPC companies capable of undertaking underground metro projects, reflecting its expertise and ongoing efforts. Analysts predict the company to deliver healthy revenue, EBITDA, and PAT growth of 15%, 18%, and 19% CAGR respectively over FY24-FY26E, supported by its strong and diversified order book and emerging opportunities.

Price Action: J Kumar Infra’s share price was down 3.99% to trade at ₹612.60 on Tuesday.

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