Sharekhan's research report on Kalpataru Power Transmission
Our interaction with Kalpataru Power Transmission Limited (KPTL) reinstates our faith on the company’s ability to demonstrate superior performance, backed by robust order book, margin tailwinds, and merger synergies. Demand environment is encouraging in both domestic and international markets across T&D, oil and gas, water, and infrastructure segments. The merger with JMC would enhance the magnitude of the business and lead to cost and interest savings. Monetisation of non-core assets and reduction in promoter’s pledge could be key re-rating catalysts.
Outlook
Promising outlook on execution/margins and high probability of deleveraging in the coming years give us comfort. Hence, we maintain our Buy rating on KPTL with a revised PT of Rs. 695, considering an attractive valuation at ~13x/~10x its FY2024/FY2025E PER.
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