Buy Kalpataru Power, target price Rs 303: Emkay Global

Emkay Global has given a buy rating to Kalpataru Power with a target price of Rs 303. The share price moved down by 0.83 per cent from its previous close of Rs 235.05. The stock’s last traded price is Rs 233.10.

Kalpataru Power Transmissions Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 3596.98 Crore) operating in Power sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 2330.00 Crore, down 33.94 % from last quarter Sales of Rs 3527.00 Crore and down 15.91 % from last year same quarter Sales of Rs 2771.00 Crore. The Company reported net profit after tax of Rs 37.00 Crore in latest quarter.

Investment Rationale
The brokerage expects normalization for KPP business operations as it was one of the few companies that was less affected by the lockdown.

Promoter/FII Holdings
Promoters held 54.37 per cent stake in the company as of March 31, 2020, while FIIs held 7.37 per cent, DIIs 29.17 per cent and public & others 8.71 per cent.