Sharekhan's research report on Kalpataru Power Transmission
Healthy operational performance led by strong execution with 25% y-o-y growth in revenue was offset by an increase in below-operating line items that curbed profit before tax growth to 15% y-o-y. PAT growth of 39% y-o-y was led by tax benefits. KPTL increased its revenue growth guidance to 20%+ for FY2020 versus earlier 15-20% along with stable OPM of 10.5-11%. Order book visibility remains healthy across verticals viz. T&D, railways and oil and gas.
Outlook
We maintain our Buy rating with an unchanged PT of Rs. 590, while marginally revising estimates for FY2020-FY2021 upwards led by strong execution in H1FY2020.
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