Sharekhan's research report on Kalpataru Power Transmission
Q3FY2023 standalone performance was driven by decent revenue growth and margin improvement. Management has trimmed its consolidated revenue growth guidance to 12-14% vs 15% earlier and expects OPM/ PBT margin of 8.5-9%/ 4.3% in FY23. YTD order inflows have been at Rs. 19,487crore with robust order book of 46,642 crore with additional L1 position of Rs. 5,200 crore. The performance is expected to improve driven by robust order book and tender pipeline, merger synergies, subsiding cost headwinds and a decline in debt and working capital.
Outlook
We upgrade Kalpataru Power Transmission Limited (KPTL) to Buy from Hold with a revised PT of Rs. 590, considering attractive valuation at 11.8/9x FY24/25E PER coupled with optimistic outlook on execution and margins.
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