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Buy Kalpataru Power Transmission; target of Rs 450: Dolat Capital Market

Dolat Capital Market is bullish on Kalpataru Power Transmission has recommended buy rating on the stock with a target price of Rs 450 in its research report dated February 15, 2021.

February 16, 2021 / 05:22 PM IST
 
 
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Dolat Capital Market's research report on Kalpataru Power Transmission


Sales for Q3FY21 came in flat at Rs19.9bn, largely in line with our estimates, as sites became almost fully normal with majority of projects operating at pre-COVID levels. EBITDA margins were stable at 10.4%. The company has an order book of Rs.133bn with a split of ~40% orders from O&G, urban infra and Rail business. The 9M order inflow for the company is Rs63bn with another L1 orders of Rs31bn, which makes it well on its targeted a full year order inflow of Rs90-100bn. It continues to maintain its revenue target of 0-5% in FY21 with EBDITA margins in the range of 10.5% while aiming for a double digit growth in FY22 and a similar 10.5% margins.



Outlook


We expect orders to pick momentum going forward given the thrust on capex in the budget. The outlook continues to remain positive for Kalpataru, along with balance sheet improvement. We maintain our Buy rating with SOTP based TP of Rs450, valuing the core EPC business at 10xSep 22E.


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Broker Research
first published: Feb 16, 2021 05:22 pm

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