Emkay Global Financial's research report on Kalpataru Power
Kalpataru Power reported 3QFY23 Sales/EBITDA growth of 10%/26% at the standalone level. As KPTL and JMC have been merged, the present merged standalone entity represents standalone financials of KPTL and JMC. T&D/Water/B&F represented 38%/21%/17% of the YTD inflows of ~Rs195bn, while railways, oil and gas, and urban infra represented ~8% each. Order book stands at Rs414bn apart from Rs52bn of L1 position. Management indicated financial synergy benefit of Rs1bn due to lower interest cost and other cost-optimization exercise. Combined bidding for larger projects is another nonfinancial benefit.
We value the standalone entity at 13.5x PE on FY25 EPS of ~Rs52, implying March-24 TP of Rs701. Our earlier TP of Rs615 was based on market value of JMC Projects. We maintain our BUY rating on the stock.
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