JMC Projects soars 17% on Rs 1,795-crore order win
Shares of JMC Projects (India) (JMC) soared 17 per cent to Rs 106.80 on the BSE in Thursday's intra-day trade after the company announced that it has secured new domestic orders worth of Rs 1,795 crore.
At 09:29 am, the stock was trading 14 per cent higher at Rs 104 on the BSE, as compared to a 0.29-per cent rise in the S&P BSE Sensex. Trading volumes on the counter jumped five-fold with a combined 880,000 shares having changed hands on the NSE and BSE till the time of writing of this report. It had hit a 52-week high of Rs 130 on July 30, 2021.
The company secured water supply projects in India worth Rs 1,085 crore and B&F projects in India worth Rs 710 crore.
"With additional new orders, JMC's order inflows for the current financial year has crossed Rs 9,750 crore, giving us confidence to deliver good growth in the coming quarters," the company's management said.
JMC, a subsidiary of Kalpataru Power Transmission, is one of the leading civil construction and infrastructure EPC (engineering, procurement, construction) companies in India.
Meanwhile, last month, credit rating agency, CARE Ratings, had reaffirmed the rating of long term bank facilities of the JMC as CARE AA- with stable outlook. Further, it had reaffirmed the rating of short term bank facilities of the Company as CARE Al+.
"The ratings assigned to the bank facilities of JMC takes into account sustained growth in total operating income (TOI) for the last three quarters ended June 2021 as compared with previous quarters amidst execution challenges pertaining to Covid-19 pandemic," CARE Ratings had said in the rating rationale.
Strong order book position largely from reputed clientele and demonstrated execution capability of JMC in civil construction as well as infrastructure projects are expected to aid growth momentum and healthy cash accruals generation, the rating agency said.
It added: The above rating strengths, however, continue to be tempered on account of moderate profitability, high leverage, working capital intensive nature of its operations and the financial support being extended to its special purpose vehicles (SPVs) operating road projects on account of their subdued performance leading to high exposure to its Build-Operate-Transfer (BOT) based road projects.