J Kumar Infra Stock Surges 16% on Maharashtra Poll Results

J Kumar Infraprojects’ shares shot up by 16% in early trade today on November 25, marking their biggest single day jump in 21 weeks. The stock rally comes as the Maharashtra election results bring attention towards infrastructure growth. 

Markets’ Optimism

The election outcome lifted the broader market mood, boosting stocks tied to government- backed sectors like PSUs, defence, and railways. Infrastructure players like J Kumar Infra were quick to benefit, showing optimism about increased public spending in the space.

For J Kumar Infra, the rally wasn’t just sentiment-driven. The company’s Q2FY25 performance showed strength, with net profit climbing 23% year-on-year to Rs. 90.2 crore. Revenue from operations grew 17% to Rs.1,292 crore, and EBITDA rose 18% to Rs. 188 crore. These numbers show its execution capability.

Capex Cycle Recovery 

The first half of FY25 wasn’t easy for the infrastructure sector. Road construction slowed to 2,700 km, compared to 3,200 km in the same period last year, due to disruptions like elections, extreme heat, and early monsoons. However, analysts are optimistic about a pick up going ahead in FY25, which could spell good news for firms like J Kumar Infra.

Big Plans & Order Book

J Kumar Infra’s order book is over Rs. 25,000 crore, five times its FY24 revenue offering visibility for the next few years. It’s also eyeing Rs. 8,000-Rs. 10,000 crore worth of new projects in FY25, with a pipeline of Rs. 35,000-Rs. 40,000 crore. The company is even planning to venture into irrigation projects to diversify its portfolio.

All in all, J Kumar Infra seems ready for growth. Its numbers, order book, and diversification plans position it well for the expected revival in the infrastructure industry. J Kumar Infra shares are currently trading at Rs. 754.95, up 9.74% today, 27.04% year-to-date, and 82.47% over the past year. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.