Buy Recommendation - Jyoti Structures

Keep buying on Jyoti Structures with target price of Rs 200.The company has posted compounded annual growth rate of 46.08% in top line and 84.50% in bottom line in last three years and is expected to maintain its growth in coming years. The company is a leading player in the domestic power transmission EPC segment and has executed transmission line projects in around 30 countries. Capability of constructing substations gives JSL the distinction of being a total turnkey EPC contactor for power transmission lines, differentiating it from other major players in the industry. Opportunities in the form of increased government thrust on improving the transmission and distribution infrastructure of the country is expected to drive the future growth of the company. The stock at the current market price of Rs 121.90 is trading 13.67 times to its earnings of Rs 8.92 and 2.90 times to its book value of Rs 42.03. We initiate a ‘BUY’ signal on the stock at the current levels with a target of Rs 200 in the medium to long-term investment horizon with an appreciation of 64%.