Motilal Oswal's research report on Kalpataru Projects
In our recent interaction, the management of Kalpataru Projects International (KPIL) highlighted notable improvements in its domestic T&D prospect pipeline and inflows of large orders from the Middle East in the oil and gas (O&G) sector. These factors provide long-term revenue visibility for KPIL, with transmission, urban infra and O&G being key growth drivers. Factoring in inflows from the Middle East, we raise our FY26 estimates by 12%. Pledging by promoters as a percentage of total shares has come down to 12.8% in Mar’24 from 17.5% in Dec’23 and 26.6% in 1QFY23, which we believe is resulting in valuation re-rating of KPIL.
Outlook
Our revised SoTP-based TP stands at INR1,200, taking into account core business valuation at a slightly higher multiple of 16x Mar’26E EPS. We maintain BUY on KPIL.
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