JPIN reported 3QFY12 earnings of Rs3.9B (+26% Q/Q), significantly ahead of our estimate of Rs2.7B, driven by sharp scale up in revenues
(+26% Q/Q) and steady margins (at 55%) during the Q. JPIN’s revenue recognition now seems to be catching up to the bookings trends registered over the last two years. Pre sales for the quarter (at Rs16B) were also quite impressive with company surpassing our full year estimate of Rs28B in 9M. While the stock has seen a sharp rally over the recent past (+30% since Dec-end); launch of Yamuna Expressway remains the key stock catalyst ahead. The project is largely completed and is expected to commence operations on conclusion of state elections by Mar-end. We
maintain Neutral and Sep-12 PT of Rs55.
