Moneycontrol
Feb 16, 2017 01:41 PM IST | Source: Moneycontrol.com

Buy Kalpataru Power; target of Rs 362: Edelweiss

Edelweiss is bullish on Kalpataru Power has recommended buy rating on the stock with a target price of Rs 362 in its research report dated February 14, 2017.

Buy Kalpataru Power; target of Rs 362: Edelweiss


Edelweiss' research report on Kalpataru Power


Kalpataru Power (KPP) maintained its revenue growth momentum, which in Q3FY17 grew 29% YoY led by pick up in execution, particularly in international projects. While order intake was weak (down 40% YoY) during the quarter, KPP is L1 in projects worth INR 30bn which along with the recently won INR 15bn orders could take order book to INR 100bn by FY17 end.


Outlook


We introduce and roll forward earnings on FY19E and maintain ‘BUY/SO’ with revised SoTP-based target price of INR 362 (earlier INR 323). We value the T&D business at 14x on FY19E EPS. The stock is currently trading at P/E of 14.7/12.5x FY18E/ FY19E SA EPS.

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