Kalpataru Projects International Ltd. share price target

We believe continuous focus on operational efficiencies, cost optimisation and prudent working capital management has helped the company improve performance across all segments. We believe worst is over and remain optimistic owing to positive outlook on T&D; and emerging segments like Railways/Oil & Gas, healthy OB, deleveraging backed by asset monetization...

We are upgrading target price of Kalpataru Power Transmission (KPTL) to Change in Estimates | Target | Reco Rs437 (Rs296 earlier) as we increase PE multiple from 6x to 8x (last 5 -year...

Kalpataru Power Transmission (KPTL), the global leader offering integrated solutions

Registered Office:Rukmini Towers, 3rd& 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020,...

OI guidance maintained at Rs90-100bn with revenue growth of 5-10% (earlier 8-10%) and EBITDA margins of 10.5-11% for FY21E. Kalpataru Power Transmission Ltd (KPTL) reported decent quarterly performance despite pandemic and onset of monsoon led by better execution, higher other income and lower interest cost. Order inflows came in at ~Rs7bn during 2Q majorly contributed by T&D; segment (98%) with the company being further L1 in orders worth ~Rs30bn. OB stands at ~Rs123bn...

Sales for Q2FY21 came in flat at Rs18.8bn, largely in line with our estimates, as company successfully restored labor availability and normalcy of supply chain; majority of projects are currently operating at pre-COVID levels. EBITDA came in flat at Rs2bn while EBITDA margins were stable at 10.7%. The company has an order book of Rs.123bn with a split of ~40% orders from O&G; and Rail business The company is looking at an ordering pipeline of Rs140-150bn in the domestic space. Along with Oil & Gas and Railways, it is targeting a full...

Registered Office:Rukmini Towers, 3rd& 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020,...

Management maintained its guidance of 8-10% revenue growth with EBITDA margins in 10.5-11% range and OI of Rs90-100bn for FY21E. Kalpataru Power Transmission Ltd (KPTL) reported steady performance for the quarter amidst nation-wide lockdown led by strong execution, better operational performance and higher other income. Order inflows stood at Rs18.7bn majorly contributed by T&D-international; segment (71%) and is further L1 in orders worth ~Rs17bn. OB stands at ~Rs135bn providing...

KTPL has laid out a three- pronged strategy of disciplined bidding to protect margins, improve WC and liquidate non-core assets. It is targeting becoming debt free in FY21, mainly from proceeds from selling transmission assets. Similar to KEC, it has also diversified with rail and oil & gas as key areas. In international markets, it has recently increased its...

Expect gradual ramp up Q2 onwards; valuations undemanding; Maintain Buy Despite a marginal topline miss, KPTL has managed its EBIDTA of 11% with a better project mix. PAT was lower than estimate on account of higher interest and taxes, as WC needs went up in Q4 While Q1 is likely to be subdued, it is confident of pickup from Q2 onwards and has guided a 10% revenue growth and margins in 10.511% range for FY21. We are building in a 5%/15% topline growth in...