Business Overview
J Kumar Infraprojects is a construction Company. Over the years it has some marquee projects under its belt. Some of the key projects Company worked on are
- Mumbai Metro Projects
- Ahmedabad Metro Projects
- DMRC Project
- UPRNNL Project
The different kinds of work Company undertakes are
- Flyover Bridge and Roads
- Skywalks
- Urban Infra
- Dams and Canals
- Under Ground Metro
- Railways
Some of the biggest projects worked on by the Company are Metro projects. So Company has some advantage when it comes to Metro projects. It does not have mile stone project from other segment.
The Company has humble beginning working on 25 thousand project as its first project. From those initial days it has grown over the years and is winning some big projects.
Stock Performance
The Stock has given more than three times return in above long term performance chart. It has not performed in last couple of years but has great run from year 2014 to 2016.
It also pays excellent dividend yield of more than 1%.As of now it is trading at PE multiple of 6. The prices are stabilizing near 100 to 150 range prices. So one can plan to evaluate the stock at these prices.
If you see the price of Company before 2014 it had top price of 100. So this is strong support level for the stock and chances of stock violating this price is small. So there is less downside and more upside in the Stock.
My Opinion
The Company is in Infrastructure development sector. Personally I am not big fan of this Sector due to huge cash demand in this Sector. The chances of project going wrong will put huge pressure on the balance sheet of the Company.
Looking at the performance of the Company it seems to be good. The Company gives good dividend and it has performed decently on stock exchanges. It has also bagged many metro projects over the years.
I do not have Infrastructure development Company in my portfolio as of now. If one has to invest in this sector then it is better to select top companies in this Sector. Small Companies are more prone issues due to delay in payment.