Kalpataru Projects International Ltd. share price target

Order inflow up 22% YoY at Rs24.9 bn, mainly driven T&D; business. YTD order inflow stands at Rs49.4 bn (FY20 guidance of Rs100 bn). L1 of position of ~Rs20 bn, mainly T&D; business. Kalpataru Power Transmission Ltd (KPTL) reported strong set of numbers for...

Valuation - Maintain Buy with unchanged PT of Rs. 590: KPTL has shown strong execution with 25% y-o-y standalone revenue growth for H1FY2020, led by better-than-expected growth in T&D; and doubling revenue from railways. Going ahead, its T&D; is expected to grow at 10-12% y-o-y, while railways and oil and gas are expected to grow at a higher pace. Further, order visibility remains healthy in domestic T&D;, neighboring countries (Bangladesh and Sri Lanka), Nordic region and African countries. We have upwardly revised our estimates for FY2020-FY2021, factoring strong...

Kalpataru reported a strong set of performance for Q1FY20 by growing at 24.9% YoY upon faster execution of projects. Revenue was mainly driven by oil & gas and the railways order execution. EBITDA grew by 22% YoY and profit after tax (PAT) had grown by 13.5% YoY.

Kalpataru Power continued with its strong project execution, clocking a 24.9% y-o-y growth in standalone revenue. However, OPM got affected by forex loss and political donations. Further, a lower other income and a rise in interest cost and depreciation lowered net profit growth to 13.5% y-o-y. The management maintained its guidance for order intake at Rs. 10,000 crore, revenue growth at 15-20% y-o-y and OPM at ~11% for FY2020E. KPTL will start receiving post-tax proceeds worth ~Rs. 1050-1100 crore from the sale of transmission assets which...

Railways, pipeline continue to post strong performance For Q1FY20, revenue for T&D; de grew 6-7% to ~ | 970 crore while railway & pipeline business grew more than 100% to ~ | 670 crore amid low base owing to better execution. Within T&D; business, T&D; domestic grew 15-20% in Q1FY20 while T&D; international de-grew owing to headwinds in execution. KPTL has maintained its revenue guidance of 15-20% and order inflow guidance of | 9000 to | 10000 crore for FY20E. The T&D; business is expected to grow 10% in FY20 while non-T&D; (railways & pipeline) is...

Good quarter, maintains revenue guidance for FY20; Accumulate The first quarter of FY20 was strong in terms of revenue and profitability, despite a slight decline in margins. The management, however, has retained its guidance for FY20. It has highlighted the sale of transmission asset portfolio and plans for the use of the proceeds for capex, debt reduction, and working capital. We estimate sales and earnings CAGR of 17%/21% over FY19-21E. We maintain our FY20/21 estimates and reiterate Accumulate rating for the stock, with a SOTP based TP of ` 530....

We interacted with the management of Kalpataru Power Transmission Limited (KPTL) and came out positively on order inflow visibility, execution and overall industry outlook. Management has maintained its order inflow guidance at Rs. 10,000 crore for FY2020E as it expects domestic T&D; tendering to pick up from Q2FY2020E and healthy traction in railways and oil and gas to continue. Consequently, management has retained its full-year revenue guidance at 15-20% y-o-y and operating margin (OPM) at ~11%. KPTL expects to strike...

Kalpataru reported a strong set of performance for Q4FY19 by growing 29% YoY upon faster execution of projects. Revenue was mainly driven by execution of orders from oil & gas and the railways.

(KPTL) reported revenue growth of 29% y-o-y to Rs. 2,491 crore during Q4FY2019, driven by healthy order execution of its ongoing projects. Meanwhile, margins remained flat at 10.7%, as stellar top-line growth was dragged down by a significant rise in raw-material cost and certain operating expense (sub-contracting cost up 39.7% and employee cost up 25.8%). Operating...

For FY19, revenue for T&D; grew 9% to | 5000 crore while Railway business grew more than 70% to | 900 crore and pipeline business grew 100% to | 1200 crore amid low base owing to better execution. KPTL's management has guided for 15-20% revenue guidance and order inflow guidance of 20% for FY20E. The T&D; business is expected to grow 10-12% in FY20 while nonT&D; (railways and pipeline) is expected to grow 30% in FY20E suggesting strong traction in execution. The EBITDA margin for T&D; is expected in the range of 11.5-12% while railways and oil & gas are expected to have margins in the range of 9-10% in FY20E with some improvement....