Incorporated in 1986, JMC PROJECTS (INDIA) LTD has evolved as a prominent engineering and construction services company. Company endeavour its presence in both domestic and global market. JMC is aligned with parent company, Kalpataru Power Transmission Limited and Kalpataru Group’s global growth plans to widen its footprint in diverse geographies. Over last three decades, JMC has been instrumental in making India’s infrastructure more efficient through building and integrating terrains and cityscapes. JMC has constructed landmark edifices across the country. JMC constructs landmark edifices including highways, expressways, metro rail, railways, bridges, flyovers, townships, tall buildings, hospitals, industrial units, power plants, water infrastructure etc. The company has started expanding vistas by taking orders from international counterparts. With strong workforce of 3000+ professionals supported with technology and an inspiring work environment, JMC collaborates with all stakeholders and create win-win situation for its customer and end users. The company’s capabilities span the entire gamut of construction civil and structural , mechanical, electrical and fire-fighting engineering etc, for all major industries and project types. Company’s registered office is in Ahmedabad being its founding city. Some of the important projects completed by company are construction of general civil, structural and architectural works for 228 MW Jegurupadu Phase II combined cycle Power Plant Project for GVK Industries Ltd, Construction of Textile Factory for shirting division at village Khatraj near Ahmedabad, construction of multipurpose air conditioned indoor stadium with required facilities for Netball and 400m x 8m lane synthetic athletic track at Thyagaraj sport complex, New Delhi, construction of three elevated metro rail stations for DMRC at New Delhi, civil structural and sanitary works for Mitsubishi car project near Chennai, construction of new campus for IIM Ahmedabad, construction of software complex in Bangalore for Infosys Technologies Ltd, construction of Flyover at CST airport Junction, santacruz, Mumbai, construction of four lane widening and strengthening of the existing two lane National Highway No 45-B from Trichy Bypass end to thuvarankurichi, construction of National Institute of fashion Technology at Delhi, construction of Education Centre Campus at Chennai, construction of Vardhman fabric factory ( a unit of mahavir spinning mills ltd) at New delhi, lift irrigation Project In Madhya Pradesh provided by Government of Madhya Pradesh. JMC participates in nation building through Public-private partnership (PPP) and undertakes large scale scale projects on Build-Own-Operate-Transfer (BOOT) basis and its other variants. Through General contracting JMC undertake single point responsibility of core and shell construction ( civil & structural works) along with internal infrastructure (roads landscaping etc), MEP (HVAC, electrical, plumbing, sanitary, fire fighting systems etc). Conventional contracting is one of the widely accepted contracting models across the world. JMC practices this for civil & structural construction for core and shell of the projects without covering general infrastructure, finishes, MEP and other services. Construction industry in India is one of the important industry and is said to be second largest industry in India after agriculture. This sector also makes significant contribution to the national economy, around 11% of GDP, along with providing employment to the large number of people. The construction industry is broadly categorized into three segments, infrastructure ( Roads, railways, irrigation etc), industrial ( refineries, power plants, factories etc), and real estate ( Residential, commercial, institutional etc). The real estate markets are slowly witnessing a revival, post of slowdown in 2017-2018. This has been on account of the uncertainty regarding implication of polices, including RERA and goods and service tax. The government’s policy to push to affordable housing is helping this segment gain traction and developers across the country are showing a keen interest in participating in this sectors growth story. The residential realty sales grew by 6% in 2018. During 2018, the office space leasing reached a historical high of 46.8 million square feet in the commercial segment. The real estate sector holds considerable significance in India and is expected to contribute about 13% by 2025. By 2030, the Indian real estate industry is expected to touch around USD 1 trillion, becoming the third largest globally. The housing shortage in India stood at 63 million units in 2014. The government has taken aggressive stance to promote affordable housing in the country. It launched an initiative, Housing for All by 2022, or Pradhan Mantri Awas Yojana with a goal of building 20 Million Affordable houses by March 2022 for urban and rural poor through financial assistance of Rs 2 trillion . As a part of the initiative, the government granted infrastructure status to enable affordable projects to avail benefits such as lower borrowing rates, tax concessions ( 100% tax immunity for developers) and increased private investment. Rising population and urbanization provides impetus to urban housing . As per the 2011 census, over 30% of India’s population lives in Urban areas and by 2030 this number is expected to grow to 40% of the country’s population. The ministry of housing estimated a housing shortage of 18.78 mn houses during the 12th plan period. The country’s total urban housing shortage is projected to be about 30mn by 2020. Indian office market have shown considerable vibrancy over the past few years and total investments in the asset class have shown an improving trend. Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times. Commercial office stock in India is expected to across 600 million square feet by 2019 end while office leasing in the top eight cities in India is expected to cross 100 million square feet by 2021. Co-working spaces across top seven cities in India has increased sharply in March 2019 , reaching 3.44 million square feet, compared to 1.11 million square feet for the same period in 2018. India’s office market is one of the well-organised office markets in Asia-Pacific region and Real Estate Investment Trust (REITs) structure is likely to help the sector become more efficient. Government has increased capital outlay for development of new institutes like AIIMS, IIT, IIMs, Exhibition centres, railway station redevelopment etc. In all opportunities for civil construction players in the real estate field are increasing at fast pace. The business environment for real estate also observed rapid changes with series of reforms in the form of implementation of Real Estate act 2016 , GST, Benanmi Properties Act, and the Insolvency and Bankruptcy code. RERA mandates disclosures on project standards, completion timeliness and it mandates deposits of sales receipts in escrow accounts for all new projects launches. This significantly enhances clarity on execution timelines and certainty on timely payments for civil contractors. Also, implementation of RERA is driving shift towards large organized civil contractors given the adherence to timely completion and quality deliverables. The infrastructure sector has been the governments biggest focus area for several years. Investment worth of Rs 50 trillion is required in infrastructure by 2024 to have sustainable development in the country. The increased impetus for accelerating infrastructure development will open up vast opportunities for JMC PROJECTS. Sectors such as roads, railways, airports, ports are likely to witness greater construction activities. Government apportioned a budgetary support of approximately Rs 4.56 lakh crores under the union budget for the infrastructure sector for financial year 2019-2020. This includes railways, roadways, aviation and shipping. India has emerged as a fastest road developer in the world with 27km of highway being built each day. Rs 83000 crores has been allocated to the highway sector. Under the Pradhan Mantri Gram Sadak Yojana, construction of rural roads have tripled. Around 19,000 crores has been allocated to PMGSY in budget 2019-2020 as compared to Rs 15,000 crore in 2018-2019. As a part of sagarmala programme, more than 400 projects have been identified for implementation, during 2015-2035, across the areas of port modernization and new port development, port connectivity enhancement, port-linked industrialization and coastal community development. Centre has proposed to allocate a total budgetary support of Rs 550 crores towards sagarmala for 2019-2020. This is up 44% against last years budgetary support of Rs 381.08 crores. Budget 2018- 2019 had set a capital expenditure for the ministry of railways at Rs 1.58 lakh crores, which is highest ever. The budget has allocated Rs 7,255 crores for construction of new lines, Rs 2,200 crores for guage conversion, Rs 700 crore for doubling of tracks, Rs 6,114.82 crores for rolling stock and Rs 1,750 crores for signalling and telecom. Government of India has taken various steps for standardization and growth of metro rail in India. The metro rail policy 2017 of Govt. of India enables rapid and sustainable growth of metro rail in the country. There are about 1000 kmn of metro line proposals under planning. The central government will approve and aid metro rail projects only if they have private participations. Mega projects such as Bharatmala, setu bharatam and char dham connectivity will be the biggest investment drivers in the sector. Phase I of Bharatmala Pariyojsns alone offers an investment opportunity of Rs 5.35 trillion. Assuming a construction intensity of around 60%, the sector offers construction opportunities of about Rs 3.21 trillion. Although the launch of new innovative implementation models, such as Hybrid Annuity model and toll-operate-transfer model have attracted substantial interest from industry players, the engineering, procurement and construction model is likely to remain the dominant mode in near to single medium. Water and irrigation infrastructure has undergone massive improvement over the years. In the water and sanitation sector, an investment of over Rs 320.55 billion is expected in the 118 upcoming projects. With a construction component of 62.5% the sector offers a construction opportunity of around Rs 208.36 billion. Government also brought Har Ghar Jal policy and allocated Rs 10,000 crore for it. The government has launched a number of schemes for augmenting sewage treatment and garbage collection infrastructure in country. This include the smart cities mission, the Atal Mission for Rejuvenation and Urban transformation, the Namami Gange Mission, national rural drinking programme. Overall, the sector has a positive outlook and offers huge opportunities . Expansion and uptake of various water supply and sanitation projects will offer multiple business opportunities across different segments and continuous efforts for rapid growth in the sector will result in elimination of major impediments. JMC is one of the fastest growing company in water business with capabilities to undertake all types of water treatment, transmission and distribution projects. The company ventured into water and waste-water business segment in 2015. In the year 2016, JMC secured its first international contract in Sri Lanka for Jaffna Water Supply Scheme. JMC Water Division has also successfully executed water projects in Raipur, Ahmedabad, Bhopal, Indore and Bhagalpur. In order to serve urban development sector JMC secured two 24×7 water supply scheme namely Burhanpur water supply project and Khargone Water supply project in Madhya Pradesh in the year 2017. As a part of company’s strategy to established itself as a major player in water infrastructure, the company started marching towards developing expertise in executing engineering procurement construction contracts for water infrastructure which are going to be major thrust in coming years. In year 2018 , JMC has secured two trunkey projects under Micro Lift Irrigation Scheme worth Rs 2,650 crore from Narmada Valley Development Authority in Madhya Pradesh. The share of JMC in this consortium in Rs 1700 crore. In 2019 as an initiative to serve rural development sector, JMC secured projects in Orissa for rural water supply schemes at Koraput, Dhenkanal and Khurda districts. JMC’s water business order book stood over Rs 2,500 crore as on 31 March 2019. At present JMC has strong presence in Madhya Pradesh, Chattisgarh, Bihar and Orissa, apart from international presence in Sri Lanka . India Infrastructure Market revenue is expected to grow US$ 2552.4 billion in 2021 from US$ 1365.5 in 2015. Installed capacity of Power generation increased with CAGR of 9.1% in FY09-18 and stood at 344 GW for FY 18. Indian energy sector is expected to offer investment opportunities worth US$ 300 billion over the next 10 years. In Independence day speech Prime Minister Mr Modi said Rs 100 lakh crore will be spent on developing infrastructure that will help in achieving the target of US$ 5 trillion economy. For potential homebuyers, the year 2019 is not expected to be any different from the last few years. Prices are likely to remain stagnant and developers will continue to focus on clearing existing inventory rather than launching new projects as they continue to grapple with regulatory changes like RERA, GST and over all subdued demand. In fact, 2019 is expected to be another tough year for real estate developers, given the ongoing liquidity problem, owing to the NBFC crisis. However, even as the scenario remains bleak, some new trends are expected to emerge during the year like affordable houses, co-working spaces, co-living options and many more. The government has announced a series of measures to revive the housing sector and boost exports as the government tries to kick-start an economy hit by lending crisis and a slowdown in demand. Coming to rescue of an estimated 3.5 lakh distress middle class home buyers, the government announced Rs 20,000 crore fund to help real estate developers complete projects that are stuck on account of last mile cash shortage. The gross leasing of office space doubled to 18.7 million sq feet during April-June quarter of this year across eight major cities driven by demand from corporate and co-working operates. The leasing stood at 9.28 million sq ft in the corresponding period of last year across the said eight cities, Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad. The 2019 office leasing track record continues to be stellar, with 32 million sq ft already leased out across metro cities in 2019. That is about 66% of the total leasing activity recorded in 2018. Co-Living spaces is expected to witness an addition of around 6,00,000 additional beds in next 3-4 years across the country. More than US$ 700 million has already been committed as an investment in the Co-living sector. Co-Living space offered a cumulative stock of more than 2,50,000 beds as of August 2019, and is going to witness a CAGR of 36% between 2019-2023. Students enrolments in the country has increased from 32.3 million in 2013-14 to 36.64 million in 2017-18. The government is targeting a gross enrolment ratio of 30% by 2020-21. Originally billed as perfect working space for millennials, Co-working spaces are becoming very popular among the large and even medium-sized businesses for their affordable infrastructure and business opportunities. Currently 46% of India’s millennials looking for tech smart offices. They embrace collaboration opportunities, giving a window to Co-working players to expand. India is also the home to 65% of the population under the age of 35 years who are seeking greater social engagement and looking for a work environment and be a part of a large community of like- minded people. This created an opportunity for spaces where innovation, community and collaboration are at forefront of creating a new way of working. Co-working spaces are mostly acquired by the start-ups. And this start-ups are expanding rapidly. So there is slow down in luxurious flats but there is increase in demand of affordable houses, Co-Living, Co-work space. All this shows there is a huge opportunity for JMC Projects to expand its operations. JMC has won contracts worth of Rs 547 crore for water pipeline, residential and commercial projects. The order include Rs 315 crore for water pipeline and residential , commercial projects worth Rs 232 crore. The total order book of company stood at round Rs 10,000 crore as of March 2019 compared with Rs 7,616 crore in the previous year March 2018. Company has delivered 150+ million square feet of construction and development work . On standalone bases the company’s income from operation has increased by 18% to Rs 3,252.86 crores in 2018-2019 from Rs 2,755.64 crores in 2017-2018. Other income increased to Rs 24.79 crores for 2018-2019 from Rs 17.62 Crores for 2017-2018. EBIDTA for 2018-2019 was Rs 361.71 crores as compared to Rs 302.39 crores for 2017-2018. In terms of percentage, EBIDTA remains stable at 11% for 2018-2019 and for 2017-2018. The operating margin remained constant even after increased in prices of major materials and labour rate due to better margins in new jobs, process improvement and operating efficiencies. Manpower cost for 2018-2019 was Rs 302.55 crores increased from Rs 266.39 crores. In terms of percentage of turnover, it decreased to 9.3% as compared to 9.7% in the previous year. The decrease is mainly due to increase in turnover for year 2018-2019. Interest expenses for the year 2018-2019 increased to Rs 95.06 crores from Rs 85.78 crore in 2017-2018. In terms of percentage of turnover it has decrease to 2.9% for 2018-2019 from 3.1% for 2017-2018. The net worth of the company has increased from Rs 788.99 crores as on March 2018 to Rs 923.27 crore as on March 2019. The total standalone borrowing has increased from Rs 736.6 crores as on March 2018 to Rs 765.6 crore as on March 2019. The debt equity ratio is at 0.83 as on March 2019, which was 0.93 as on March 2018. The company maintains healthy A1+ and A+ credit rating respectively for its short term and long term borrowings from CARE. In 2018-19 the company has capitalized additional fixed asset of Rs 150 crore. The current assets as on March 2019 were Rs 2,930.17 crore as against Rs 2,479.28 crore as on March 2018. The company current liabilities as on March 2019 was Rs 2,049.88 crore as against Rs 1,726.52 crore as on March 2018. Total income of operation grew to Rs 3,252.86 crore in March 2019 from Rs 209.94 crore in March 2003. Net profit of company grew to Rs 142.13 crore in March 2019 from Rs 2.05 crore in March 2003. In 16 years company posted loss of Rs 4.04 crore only in March 2004 . Remaing 15 years company posted profits. Total debt of company is Rs 658.32 crore. By all this I prefer buy call on JMC PROJECTS (INDIA) at CMP of Rs 106.70