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!!! W E L C O M E !!!
In INDIA, people generally relate to stock market as “EASY MONEY” or “SATTA BAZAAR”. For them it’s purely a GAME or matter of sheer LUCK and nothing more than that. But seldom do they know, by following certain PRINCIPLES and taking INFORMED decision, this same platform has the power to take them from rags to riches. No doubt, it has a certain amount of RISK attached to it. But every business or investment has it. What more, the Finance Ministry has already made the long term capital gain as TAX FREE whereas the short term capital gain is taxed at merely 10%. On the economic front, India’s GDP is growing and is expected to grow at scorching pace of more than 8%. Unfortunately, even today our market is being ruled and dominated by FIRANGI’s money. But I can see, the day is not far when our general PUBLIC will change its perception and start putting MOST of their savings in equities as an ** Investment **.
Remember, "K N O W L E D G E" and "P A T I E N C E" are the key to success.
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SAARTHI

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Thursday, September 18, 2008

JMC Projects Ltd - Rs 145.00


Founded in 1982, JMC Projects Ltd (JMC) was originally promoted by Mr. Suhas Joshi & Mr. Hemant Modi as Joshi & Modi Construction Pvt Ltd. Later it was renamed as JMC Projects Ltd and subsequently in 2004 was taken over by the renowned and well diversified Kalpataru group. Since then, under the new corporate leadership JMC has been growing leaps and bounds and today it is among the top seven players for building and factory construction in India. It has also been recognized as India’s sixth fastest growing company by the latest “Business Today” June’08 edition. Importantly JMC caters to all major sectors of the economy namely industries, buildings and infrastructure. It provides all types of construction services including fabrication and erection of structural steel components, pre-casting and allied works. It has successfully ventured into fields of turnkey execution involving civil, mechanical, electrical, HVAC, fire fighting, architectural and landscaping works. Over the years JMC’s major thrust has been in the areas of industrial plants which include automobiles, textiles, heavy engineering, chemicals, cement, pharmaceuticals, sugar, power plants etc, and institutional building comprising hospitals, software parks, hotels, educational institutes etc. It boasts of several landmark projects such as construction of IIM Ahmedabad campus, three elevated Delhi Metro railway station, Software Park for Infosys in Bangalore, residential/commercial complex at Bhopal for MP housing Board, Vardhman Medical College at Delhi, Software development centre in Pune for Syntel Int apart from constructing factory/plant for Nirma, Arvind Mills, Maruti Udyog, Hindustan motors, Indian Rayon, Alstom Projects etc.

Of late, apart from industrial and building project, JMC has started focusing on infrastructure and power projects. It is aggressively bidding for contracts to construct bridges & flyovers, roads & highways, railways stations, marine work, water supply & irrigation projects and construction of power plants. Importantly, JMC owns & operates a large fleet of the best & the latest construction plants & equipment which ensures availability of the pertinent equipment for the particular task. Last fiscal company made an additional investment of more than Rs 100 cr in fixed assets to increase its project execution capacity. Today, JMC is among the few construction companies certified under ISO 9001:2000 quality management system by TUV Management Services of Germany. Because of its excellent track record, technological & execution capabilities and strong backing by the parent company i.e. Kalpataru Power Transmission Limited, JMC has been successful in getting some major orders from prestigious clients such as BHEL, Wipro, MPRDC, NHAI, Prestige Group, EISAI Pharma, JP Greens, RGA Software etc. during last fiscal. This has resulted into massive order in hand position of more than Rs 2000 cr as on March 2008 which is twice its FY08 turnover. In future company intends to up railways, airports and water management projects on an EPC basis which will further add to its bulging order book.

Ironically despite robust performance quarter after quarter, share price of JMC has been decimated to one fourth from its high of Rs 575 in Nov’07. For FY08 its revenue jumped up 80% to Rs 915 cr and PAT almost doubled to Rs 31 cr posting an EPS of Rs 17 on equity of Rs 18.14 cr. Even for Q1FY09 when most of the construction companies announced disappointing result, JMC registered 75% rise in topline to Rs 313 cr and 50% jump in profit to Rs 8 cr. Last year to fund its working capital requirement company had raised Rs 25 cr thru issue of preference shares to be convertible into equity shares @ Rs 202 per share. With respect to CMP, the chance of conversion into equity shares is less and it may get transformed into redeemable preference share. Well considering its strong order book position, JMC is expected to clock a turnover of Rs 1350 cr and PAT of Rs 32 cr for FY09 which leads to an EPS of Rs 18 on current equity. Investors are recommended to buy at current levels as at average discounting by 12x times, share price has the potential to shoot up to Rs 220 (60% appreciation) within 12 months.


Posted by S A A R T H I at Thursday, September 18, 2008

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