Kalpataru Power may test Rs 315, says Pankaj Pandey

Pankaj Pandey of ICICIdirect told CNBC-TV18, "In Kalpataru Power, we have a target price of Rs 315. If you look at within the overall capital expenditure (capex) and the segment we are seeing some revival in some segment and power distribution and transmission has gone up in these segments wherein we have seen good amount of tendering as well as ordering activity in the last one year and this company if you look at prior to last year had been witnessing order inflows in the range of 3,000-3,500 and in between FY11 and FY12 the company also faced problems in terms of slower execution leading to single digit kind of topline growth. In addition to that we had issues and challenges on the interest cost fund."In the last year is that the order inflows have picked up significantly. So, last year the company witnessed an order inflow of about Rs 7,450 crore odd and we expect over the next two years also the ordering would be in a similar range wherein next year we are expecting order inflows to the tune of about Rs 6,600 crore odd and which should again inch up to about Rs 7,200 crore odd. Margin wise also we expect this company to witness stable sort of margins in the range of 10-11 percent odd. So, we expect the overall growth in the company to be about 22 percent odd and the bottom-line growth is expected to be in the range of 28 percent odd largely because of the savings which the company would incur on the interest cost fund.""So, within power and distribution space this company is in a sweet spot in terms of the beneficiary of the government capex at this point in time."