ICICI Direct is bullish on Kalpataru Power has recommended buy rating on the stock with a target price of Rs 550 in its research report dated May 10, 2019.
ICICI Direct's research report on Kalpataru Power
For Q4FY19, Kalpataru Power (KPTL) reported robust revenue at Rs 2491.4 crore registering strong growth of 29.0% YoY (above our estimate of Rs 2322.4 crore) driven by strong execution in T&D, oil & gas and Railways. For FY19, revenues grew 23.1% to Rs 7115.1 crore. EBITDA came in at Rs 266.4 crore, with EBITDA margins of 10.7%. PAT came in at Rs 136.9 crore (in line with our estimate of Rs 137.7 crore) with growth of 30.6% YoY. Order inflow for Q4FY19 came in at Rs 2206 crore while FY19 order inflow was at Rs 8340 crore (declined 10.7% YoY). As on FY19, the order book was at Rs 14068 crore providing good revenue visibility over next year.
With revenue and PAT CAGR of 16.6% and 19.0%, respectively, in FY19-21E, we value KPTL on a SoTP basis and maintain BUY with a revised fair value of Rs 550/share (with base business at 12.5x FY21E).
For all recommendations report, click here
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