HDFC Securities is bullish on Kalpataru Power Transmission has recommended buy rating on the stock with a target price of Rs 333 in its research report dated May 21, 2020.
HDFC Securities' research report on Kalpataru Power Transmission
4QFY20 performance was a miss owing to COVID-19 impact in last week of Mar-20 (Rs 3bn miss in revenue). Multiple triggers are in place for further re-rating with (1) Resumptions of near 75-80% execution in May-20 (2) Likely monetization of three BOOT transmission assets during FY21E & (3) Restructuring of JMC three Roads BOTs, which shall reduce cash burnout. We have increased FY21/22E EPS by 28.7/4.6% to factor in better than expected execution ramp up.
We maintain BUY on Kalpataru Power Transmission Ltd. (KPTL) with increased SoTP of Rs 333/sh (core 10x FY22EPS).
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