Buy Kalpataru Projects; target of Rs 1450: Motilal Oswal

Motilal Oswal's research report on Kalpataru Projects

Kalpataru Projects (KPIL) reported a sharp beat on revenue and PAT during 1QFY26. This was driven by strong execution across T&D, B&F, and the oil & gas division. The company continues to benefit from a strong prospect pipeline in T&D and buildings & factories. We anticipate KPIL to benefit from 1) incremental T&D awarding on both domestic and international fronts, 2) execution ramp-up of the existing strong order book, and 3) comfortable working capital. We marginally raise our estimates by 3%/1% for FY26/27 to bake in the 1QFY26 performance. The stock is currently trading at attractive valuations of 20.7x/15.8x P/E on FY26/27 earnings. Reiterate BUY with an unchanged SoTP-based TP of INR1,450, valued at 18x P/E for the core business.

Outlook

KPIL is currently trading at 20.7x/15.8x P/E on FY26/27 earnings. Reiterate BUY with an unchanged SoTP-based TP of INR1,450 based on 18x P/E for the core business.