Asset manager of Abakkus - Sunil Singhania has bought this small-cap infrastructure stock

The stock has delivered a stellar Q1 FY22 result with a YOY profit increase of 93%.

Sunil Singhania is one of the country's top stock market investors. He co-founded Abakkus Asset Manager, an asset management firm focused on the Indian market. He was previously a global equity head at Reliance Capital Group Ltd. The AUM of the Reliance Growth Fund (now known as Nippon India Growth Fund) increased 100 times in less than 22 years under his leadership.

As per the June quarterly ending, Sunil Singhania has 28 stocks in his portfolio worth Rs 2,128.4 crore.

Recently, he bought a fresh position in 4 stocks- J Kumar Infraprojects Ltd, Stylam Industries Ltd, CMS Info Systems Ltd. and Ethos Ltd.

He has bought stakes worth 2.7%, 1.9%, 1.1%, and 1.3% in J Kumar Infraprojects Ltd, Stylam Industries Ltd, CMS Info Systems Ltd. and Ethos Ltd, respectively.

The investment made in J Kumar Infraprojects Ltd is the highest among these four purchases worth Rs 62.2 crore as of August 16.

J Kumar Infraprojects is involved in the business of contract execution for various infrastructure projects, such as civil construction, transportation engineering, irrigation, piling work, etc.

The company has delivered excellent Q1 FY23 results. The Q1 revenue stood at Rs 994 crore, up 47% on a YOY basis. Q1 EBITDA was reported at Rs 140 crore with a 14.1% EBITDA margin. The Q1 profit after tax nearly doubled on a YOY basis from Rs 32 crore in Q1 FY22 to Rs 62 crore, while the Q1 PAT margin stood at 6.2%.

According to the June quarterly update, the company’s order book remains at Rs 12095 crore. In this, 57% of the order book is contributed by water projects, 35% from flyovers, bridges, roads, and tunnels; 7% from metro projects, and the rest 2% comes from civil construction.

The company belongs to S&P BSE group ‘B’ and has a market capitalisation of Rs 2397 crore.

On August 16, at 11:50 am, the stock is trading at Rs 317.05 with 2.32% gain. The scrip has a 52-week high and low of Rs 351.95 and Rs 149.05, respectively.