Buy Kalpataru Power Transmission target of Rs 250: Sharekhan
Sharekhan is is bullish on Kalpataru Power Transmission has recommended buy rating on the stock with a target price of Rs 250 in its research report dated May 21, 2020.
May 25, 2020 / 09:49 PM IST
Sharekhan's research report on Kalpataru Power Transmission
Lower execution due to the lockdown impacted revenue, while operating profit margin expanded marginally. However, higher interest cost and tax rate led to a 21.7% y-o-y decline in standalone net profit. Management has guided for5-10% standalone revenue growth for FY2021and OPM of 10.75-11%.The company has bagged orders worth Rs. 909 crore YTD and is L1 in Rs. 2,000 crore orders. KPTL has announced buy back of shares, which may have limited impact on sentiments but may restrict the decline in the stock price. Management continues its asset monetisation exercise to strengthen its balance sheet.
We maintain our Buy rating on Kalpataru Power Transmission Limited (KPTL) with an unchanged PT of Rs. 250, considering attractive valuation and KPTL’s strong execution and order intake capabilities.
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