An 87% price target hike by CLSA takes this stock to a record high
CLSA believes that J Kumar Infra is an urbanisation capex play which is benefitting from climate resistant infrastructure.
Shares of J Kumar Infra has opened with gains of 15% at a record high of ₹565 after brokerage firm CLSA raised its price target on the stock.
The brokerage maintained its "buy" recommendation but increased its price target by 87% to ₹720 from ₹385 earlier. The revised price target implies a potential upside of 45.7% over the next 12 months from Friday's closing price.
CLSA believes that J Kumar Infra is an urbanisation capex play which is benefitting from climate resistant infrastructure.
J Kumar Infra has seen strong urbanisation orders in financial year 2024 so far, with its order backlog going up by 114% from last year.
The fact that it is building climate-resistant urban infrastructure, J Kumar Infra is well placed to double its topline going forward, according to CLSA.
As a result, the brokerage has revised its Earnings per Share (EPS) estimates by 11% over financial year 2025 estimates.
In an interaction with CNBC-TV18 on December 5, Nalin Gupta of J Kumar Infra said that he expects the company's margin to hover around the 14% to 15% mark.
Gupta also said that the company has bagged orders worth ₹7,600 crore and is L1 in orders worth ₹1,300 crore this fiscal. He further added that the company will hit order book worth ₹25,000 crore by financial year 2027 but can achieve it earlier too.
Shares of J Kumar Infra are trading 12.7% higher at ₹557.40. The stock has doubled so far in 2023.
First Published: Dec 26, 2023 9:26 AM IST
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