Buy Kalpataru Projects; target of Rs 1,408: Anand Rathi

Anand Rathi is bullish on Va Tech Wabag has recommended buy rating on the stock with a target price of Rs 1,408 in its research report dated February 20, 2026.

Broker Research

February 20, 2026 / 14:51 IST

buy

Anand Rathi's research report on Kalpataru Projects

KPIL reported Rs 57.8 bn revenue in Q3FY26 (vs. our estimate of Rs 56.6 bn), led by strong momentum in T&D, B&F, Oil & Gas and Urban Infra. PBT margin improved 31bps y/y due to: (a) 70% of OB – B&F and T&D – operate at double digit margin; and (b) lower finance cost led by improved net debt position. Ongoing inflow momentum, healthy execution and operating profit and capex led to satisfactory performance in 9MFY26, which is likely to continue in FY27.

Outlook

Strong prospects in T&D and B&F, and its segment-presence are the auguries. Efforts to trim NWC and divest non-core assets imply financial prudence. Upwardly revising our revenue estimate by 5/9% for FY27/28e, we upgrade our rating on the stock to BUY with an upwardly revised TP of Rs 1,408 (from Rs 1,351 earlier), valuing it at 19x FY28e EPS.

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