Kalpataru Projects International Ltd. share price target

Standalone Order Book Continues to Remain Robust KPTL's standalone order book continues to remain robust at Rs97.5bn (1.9x FY17 revenues) as of Jun'17 out of which 43% are international orders which implies strong revenue visibility over the next 2 years. Further, KPTL has L1 position for orders over Rs25bn as of 1QFY18-end. While T&D; and Railways business account for ~73% and ~12% of KPTL's order book, respectively,...

JMC targets 15% revenue growth in FY18. With higher exposure to private sector projects, we remain cautiously optimistic. Further, we have revised the number downwards for asset heavy subsidiaries by 12-14% in FY18/19. This will contribute lower other income to standalone. With team in place, Shree Subham, has marched past EBITDA positive mark. With steep interest outgo, PBT is in red-albeit showing an improving trend. Without major change in estimates, we maintain HOLD. Strong growth in JMC soothes concerns: JMC reported 19% YoY growth in revenue at...

We roll forward our valuations to Jun-19 and reiterate BUY with a revised TP of Rs 426/sh (SA EPC at Rs 346/sh, 15x June-19E EPS). Kalpataru Powers (KPP) 1QFY18 revenue came in at Rs 11.7bn (+1.4% YoY) with T&D; revenues declining 3% YoY on back of deferrals due to GST. Growth was seen in Railways (+17% YoY) and Piping business (27% YoY). EBITDA margin improved 40bps to 11.7% on execution of high-margin Railway orders and cost control measures. APAT stood at Rs 705mn (+9.2% YoY). Order inflows increased to Rs 21.3bn (+8.7% YoY), leading to a robust closing order book of Rs 97.5bn (2.0x TTM revenues).

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.