Kalpataru Projects International Ltd. share price target

With team in place, Shree Subham, at the best will be EBITDA neutral. The future remains uncertain. Yet we maintain HOLD. Result highlights and Investment rationale...

Earnings Growth Continues to Remain Robust on High Order Book Led by a strong 74.0% YoY growth in infrastructure business, standalone revenue of Kalpataru Power Transmission (KPTL) grew by 12% YoY in 4QFY17, lower than our estimates, as the Company faced some execution challenges in Power T&D; business. Aided by lower interest cost (-13.8% YoY), its PAT grew by a strong 33.5% YoY to Rs896mn with PAT margins growing by 110bps YoY to 5.9%. At subsidiaries level, while JMC's revenue grew by 6.0% YoY (with 8.5% margins), Shree Shubham Logistics (SSL) reported 79% YoY decline in revenue led by record lower utilization levels. SSL's net loss widened to Rs600mn vs. Rs242mn in 4QFY16. KPTL is likely...

Kalpataru Powers (KPP) 4QFY17 revenue came in below our estimates, with growth at 12.5% YoY. EBITDA margin improved 40bps to 10.8%. Aided by lower interest cost (-20.1% YoY), APAT registered a strong growth of 33.5% YoY to Rs 876mn (in-line with estimates). Order inflows improved substantially to Rs 28.5bn, post a muted 3QFY17.

Kalpataru Power Transmission Limited (KPTL) is amongst the largest players firmly entrenched in the global power transmission and infrastructure EPC space. While there is surplus capacity and low utilization of existing capacity among power generation firms, the stage is all set for revenue and order book growth for power transmission and..

Growth Momentum Continues; Strong Order Book Offers High Revenue Visibility Kalpataru Power Transmission (KPTL) has delivered a strong performance in 3QFY17, aided by better execution of projects. Though its standalone revenue grew by 29% YoY, its subsidiaries reported decline in revenue. JMC Projects' revenue declined by 4.8% YoY with margins at 8.8%, while Shree Shubham Logistics' revenue plunged by 55% impacted by demonetization. We expect KPTL to be a key beneficiary of strong transmission capex in both domestic and global markets. Backed by strong order book, KPTL is expected to sustain growth momentum in revenue and earnings,...

First, KPP exceeds our expectations. And we think KPP can meet the lowered revenue guidance. Excluding from a quarterly perspective, it takes six months to convert order backlog to full-stream revenue. And that is where we remain bullish....

Kalpataru Powers (KPP) 3QFY17 result was ahead of our estimates, with strong revenue growth ( 29% YoY), stable EBITDA margins of 10.5% ( 20bps YoY) and lower interest costs (-9% YoY). Consequently, APAT reported a strong growth of 57% YoY to Rs 571mn. Order inflows for the quarter was muted.

KPP fails to meet expecations. We are, however, optimisitic. First, KPP lowered revenue guidance to the lower end. Indeed, it takes six months to convert order backlog to full-stream revenue. However, 30% growth in H2 revenue could perhaps slip between a cup and a lip. Second, from putative labor issues to the latest fad of demonetization, the implied revenue growth in JMC is a...

KPP beats our estimates. Contrast to our expectations, the revenue was bleak. Yet we are positive on multiple counts: First, KPP maintains the 20-25% growth in revenue guidance. Second, it takes six months to convert order backlog to full-stream revenue. Case-in-point: In the initial phase of EPC contract where design and approval is due, the time-line ostensibly spoils the show. However, that will not be the case in quarters to come by. Faced by labor issues, the revenue from JMC were down. With team building in place, Shree Subham, hopefully, will be back in green. We upgrade our recommendation to HOLD from REDUCE....

Kalpataru Powers (KPP) 1QFY17 revenue (-1% YoY) was marginally below our estimates, however better margins (11.3%, 90bps YoY) and lower interest expense (-40% YoY) led to an inline PAT (Rs 645mn, 33% YoY).