Shares of Kalpataru Projects International rallied 3 percent to Rs 1,311 per share on July 9 after the board approved proposal to set up fund raise limit up to Rs 1,600 crore by way of issuance of secured or unsecured redeemable non-convertible debentures.
So far this year, the stock of this infrastructure player soared over 84 percent, beating benchmark Nifty 50's 11 percent rise during the same period. Earlier, Kalpataru Projects had hit 52-week high of Rs 1,369 per share on April 21, 2024.
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Recently, Kalpataru Projects said that the company and its joint ventures and international subsidiaries have secured new orders worth Rs 2,333 crore. The new orders include Transmission & Distribution (T&D) business in India and overseas markets, an EPC order for an industrial plant in the metal industry, and a residential building order in India.
In its annual report, the company emphasised its strategy to strengthen its presence in existing geographies by tapping into large and complex EPC projects, diversify into newer geographies and foray into newer businesses such as data centers, airports, tunneling, urban mobility, hydrocarbons, etc.
Kalpataru has a presence in 73 countries, and it has ventured into Madagascar, Poland, Niger and Tanzania for supply of tower parts. In international geographies such as Europe, Africa and LatAm, there was a substantial growth in T&D ordering, said the company. Notably, subsidiaries Linjemontage and Fasttel also reported 104 percent/30 percent growth in the order book in FY24.
Following this, analysts at Motilal Oswal reiterated their 'Buy' rating with Rs 1,385 as target price due to attractive valuations. However, they cautioned against slowdown in order inflows, spike in commodity prices, higher inflation, and intensified competition as key downside risks.
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