Sharekhan's research report on Kalpataru Power Transmission
Healthy operational performance led by strong execution with a 25% y-o-y growth in revenue was offset by an increase in below-operating line items that curbed net profit growth to 13.5% y-o-y. KPTL maintained guidance for order intake at Rs. 10,000 crore, revenue growth at 15-20% y-o-y and OPM at ~11%. Divestment of three transmission assets will de-leverage balance sheet, boost working capital management and capex for future growth.
Outlook
We maintain our Buy rating with a revised PT of Rs. 590, as we have lowered net earnings estimates for FY2020-FY2021.
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