Moneycontrol
Get App
Last Updated : May 22, 2020 05:07 PM IST | Source: Moneycontrol.com

Buy Kalpataru Power Transmission; target of Rs 261: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Kalpataru Power Transmission has recommended buy rating on the stock with a target price of Rs 261 in its research report dated May 21, 2020.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Kalpataru Power Transmission


Kalpataru Power Transmission Ltd (KPTL) reported numbers largely in-line with our estimates barring PAT which got impacted due to lower sales and higher effective tax rate (42%). Order inflows stands at Rs65.2bn for FY20 majorly contributed by T&D segment and is further L1 in orders worth ~Rs20bn. OB stands at ~Rs133bn providing revenue visibility for next 2-3 years. Despite Covid-19 impact management is confident to achieve a revenue growth of 10% with 10.5-11% EBITDA margin for FY21E. Given the strong bid pipeline and opportunities arising in T&D (Green Energy Corridor projects in domestic market and international projects) space, management has guided for an OI of Rs100-110bn (~Rs30bn already achieved).


Outlook


With strong revenue visibility on back of robust order-backlog, steady margin profile, positive outlook in T&D and emerging segments like Railways/Oil & Gas we expect KPTL to deliver ~13% earnings CAGR over FY20-22E. We maintain BUY with a revised SOTP based TP of Rs261 (earlier TP of Rs275).




For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

First Published on May 22, 2020 05:07 pm
Sections
Follow us on