Dolat Capital's research report on Kalpataru Power Transmission
Q1 results came in better than estimates (Exhibit 1) though it was a subdued quarter due to lockdown; EBITDA was lower by 19% YoY but EBITDA margins were fairly stable at 10.7% due to cost rationalization measures. The management is confident about recovery of lost productivity in H2FY21 and maintains guidance of 5-10% revenue growth and margins in 10.5-11% range for FY21. We assume a 5%/15% topline growth in FY21E/22E and maintain our FY21E and FY22E estimates as outlined in Exhibit 2 Visible order inflow of Rs230bn and L1 orders of Rs50bn coupled with shift to favorable business mix will lead to steady revenue growth.
Outlook
We continue to maintain a Buy rating on the stock with a TP of Rs320
For all recommendations report, click here
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