Prabhudas Lilladher is bullish on Kalpataru Power Transmission has recommended buy rating on the stock with a target price of Rs 565 in its research report dated May 10, 2019.
Prabhudas Lilladher's research report on Kalpataru Power Transmission
We are revising upward FY20/21E EPS estimate by 10%/4%YoY due to 1) Robust earnings performance in FY19 2) Strong existing order book and healthy order inflow pipeline and 3) Expectation of execution momentum sustaining. Kalpataru Power Transmission (KPTL) reported strong set of numbers for 4QFY19 with PAT of Rs1.4 bn (PLe Rs1.3bn) mainly on the back of strong execution in T&D, Oil & Gas Pipeline and Railways segments and successfully balance sheet strengthening.
Outlook
We believe steady margin profile and healthy outlook in T&D and emerging segments like Railways/Oil & Gas will help KPTL deliver 19% earnings CAGR over FY19-21E. We recommend BUY on the stock with revised SOTP based target price of Rs565.
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