JMC Projects from KRC

JMC Projects (India) Ltd., an ISO 9001:2000 certified company and a part of Kalpataru group is engaged in the construction business has a well diversified clientele across four major segments of the business- Industrial & Power, Buildings, Housing and Infrastructure. The company has posted impressive results for quarter ended Dec’06, by registering top-line growth of 114 percent to Rs 139.59 crore and net profits of Rs 4.96 crore as against net profit of Rs 0.50 crore in quarter ended Dec’05. It has also improved its operating margins from 5.87 percent in Dec’05 quarter to 7.87 percent in Dec’06 quarter. JMC has come out of hibernation after Kalpataru management has taken management control. JMC has experienced a paradigm shift in its functioning owing to corporate restructuring and resultant efficiency gains, which will translate in improving the company’s operational efficiency and earnings further. JMC is on the growth trajectory with an order book of Rs. 1100 crore, a jump of 57 per cent over the same period last year.

The company has raised Rs. 82.47 crore vie Right Issue (IInd tranch) to build up large capacity for executing burgeoning order book. It has improved its leverage as well. Thus, we believe the company has potential to post stronger financial performance in future with

all the initiatives that it is currently undertaking. Hence, we recommend long term investors to buy the stock.