Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More

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.

May 22, 2020 / 05:07 PM IST
  • bselive
  • nselive
Todays L/H

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).


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 are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 22, 2020 05:07 pm

stay updated

Get Daily News on your Browser