AgenciesRelated
Anand Rathi has buy call on with a target price of Rs 427. The current market price of Kalpataru Power Transmissions is Rs 349.5. Time period given by analyst is one year when . price can reach defined target.
Kalpataru Power Transmissions Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 5211.82 Crore) operating in Power sector.
Kalpataru Power Transmissions Ltd. key Products/Revenue Segments include Income from EPC,Contracts,& Others, Transmission Lines, Towers & Structures, Others, Scrap, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2020.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 4169.00 Crore, up 6.46 % from last quarter Total Income of Rs 3916.00 Crore and up 1.58 % from last year same quarter Total Income of Rs 4104.00 Crore. Company reported net profit after tax of Rs 115.00 Crore in latest quarter.
Investment Rationale
Prevailing challenges related to input costs and supply-chain disruptions hurt Kalpataru’s Q4 FY22 performance. Revenue fell 14% y/y and the EBITDA margin contracted 189bps y/y. On execution front, the company is well placed to deliver decent revenue growth (an 11% CAGR over FY22-24) led by its strong, Rs157.6bn, order book, 2.2x FY22 sales. Commodity pressures, however, will curb profitability, with FY23e/FY24e EBITDA margin expected to be benign at 8.7%/9.3%, compared to the past 10.5-11%. The recent fall in the stock price reflects the ongoing challenges and, hence, is attractive at 10.7x FY24e EPS. It maintains Buy rating with a target price of Rs427 (assigning a 10x P/E to FY24e core earnings).
Promoter/FII Holdings
Promoters held 51.58 per cent stake in the company as of 31-Mar-2022, while FIIs owned 5.31 per cent, DIIs 35.79 per cent.
Kalpataru Power Transmissions Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 5211.82 Crore) operating in Power sector.
Kalpataru Power Transmissions Ltd. key Products/Revenue Segments include Income from EPC,Contracts,& Others, Transmission Lines, Towers & Structures, Others, Scrap, Export Incentives and Other Operating Revenue for the year ending 31-Mar-2020.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 4169.00 Crore, up 6.46 % from last quarter Total Income of Rs 3916.00 Crore and up 1.58 % from last year same quarter Total Income of Rs 4104.00 Crore. Company reported net profit after tax of Rs 115.00 Crore in latest quarter.
Investment Rationale
Prevailing challenges related to input costs and supply-chain disruptions hurt Kalpataru’s Q4 FY22 performance. Revenue fell 14% y/y and the EBITDA margin contracted 189bps y/y. On execution front, the company is well placed to deliver decent revenue growth (an 11% CAGR over FY22-24) led by its strong, Rs157.6bn, order book, 2.2x FY22 sales. Commodity pressures, however, will curb profitability, with FY23e/FY24e EBITDA margin expected to be benign at 8.7%/9.3%, compared to the past 10.5-11%. The recent fall in the stock price reflects the ongoing challenges and, hence, is attractive at 10.7x FY24e EPS. It maintains Buy rating with a target price of Rs427 (assigning a 10x P/E to FY24e core earnings).
Promoter/FII Holdings
Promoters held 51.58 per cent stake in the company as of 31-Mar-2022, while FIIs owned 5.31 per cent, DIIs 35.79 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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