Motilal Oswal's research report on Kalpataru Projects
KPIL’s 4QFY24 result was slightly lower than our estimates. Revenue/EBITDA/PAT grew 17%/29%/52% YoY in 4Q. Revenue growth was led by healthy project execution in the T&D, water and urban infra segments. KPIL continues to benefit from an improved prospect pipeline across key segments of T&D and B&F. Post-merger synergies are getting reflected in larger-sized order inflows in the tunneling, B&F, industrial plants, data center and oil and gas segments.
Outlook
KPIL is currently trading at 22.1x/16.0x FY25E/FY26E EPS. We raise our SOTP-based TP to INR1,360, based on 17x P/E for the core business as pledge reduction is leading to valuation re-rating for the company. This is still at a discount to its immediate peer. Reiterate BUY.
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