Kalpataru Projects International Ltd. share price target

The board of Kalpataru Power Transmission ltd. (KPP) approved merger of Change in Estimates | Target | Reco JMC Project (subsidiary) with KPP (all equity merger) in 4:1 ratio, expected to...

Kalpataru Power Transmission (KPTL) reported weak Q3FY22 performance with revenue decline of 7% YoY and margins getting impacted due to higher commodity and freight cost. Given muted performance in 9MFY22, higher commodity price and freight cost, management has revised downward its FY22 revenue guidance to single digit decline (earlier 5-10% growth), EBITDA...

revenue decline of 14% YoY given 1) supply chain constrain, 2) delayed dispatches in T&D; business and 3) lower sales in O&G; segment (due to unseasonal rain). Rise in commodity price and freight cost impacted EBITDA...

Expected cash proceed from monetisation of non-core assets by Q4FY22E, to make balance sheet net debt free at standalone level. auger well, (ii) Volatile commodity...

Net debt increased to Rs12.2bn v/s Rs7.7bn in Q1FY21, owing to lower cash collections and increase in working capital days. Kalpataru Power Transmission Ltd (KPTL) reported subdued Q1 performance led by 1) execution miss on account of second wave of Covid, 2) increase in freight cost and 3) supply side constraints. Order inflow came in at Rs8.7bn, majorly contributed from T&D; segment (56%). Further it is L1 in orders worth Rs25.5bn. OB stands healthy at Rs134bn (1.7x TTM revenue), providing...

KPTL's order inflow in Q4FY21 was at | 3017 crore. KPTL's FY21 order inflows for FY21 was at | 8443 crore out of which T&D; contributed 74%, followed by oil & gas 13% and 13% from Railways. Also, KPTL is L1 in orders worth ~| 1300 crore. As on Q4FY21, order book was at | 13890 crore (including Linjemontage) providing good revenue visibility. In unexecuted order book, T&D; contributed 59% followed by oil & gas (24%) and Railways (17%). We build in order inflow of | 8700 crore, | 10700 crore for FY22E, FY23E, respectively. We expect overall revenue, EBITDA CAGR of 8.6%,...

finalization has been witnessed owing to pandemic. Management guided for 10-15% revenue growth with double digit EBIDTA margins for FY22E. optimistic owing to positive outlook on T&D; and emerging segments like Railways/Oil & Gas, healthy OB, deleveraging backed by asset monetization...

For Q3FY21, KPTL's standalone revenue was at | 1993 crore (our estimate of | 2183 crore) merely growing 0.7% YoY on the back of steady execution across all businesses amid challenging economic conditions and labour availability constraints. EBITDA came in at | 207 crore (our estimate of | 231.4 crore), down marginally by 0.5% while EBITDA margins sustained at 10.4% with marginal decline of 10 bps YoY. Adjusted PAT (net of exceptional items) came in at | 147.9 crore, up 16.5% YoY partly aided by reduction in interest expense, which declined 45% to | 23 crore YoY. KPTL reported...

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...