Buy Kalpataru Power; target of Rs 385: Anand Rathi

Anand Rathi 's research report on Kalpataru Power

Despite Covid disruptions, Kalpataru Power posted better-than-expected results. Its healthy order book and execution ramp-up at various sites helped management remain upbeat and maintained its 5-10% revenue growth and 10.5-11% EBITDA margin guidance for FY21. Also, it is confident of bagging orders of `90bn-100bn. In accordance with the better-than-expected Q1 and healthy order backlog of `135bn, we have raised our revenue and margin. The ongoing monetisation of transmission assets is likely to significantly de-lever the balance sheet.

Outlook

We maintain a Buy with a higher sum-of-parts-based TP of `385 (earlier `344).

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