The Economic Times daily newspaper is available online now.

    Buy Kalpataru Power Transmissions, target price Rs 500: Emkay Global Financial Services

    Synopsis

    There has been an improvement in net debt(FY22: Rs4.1bn vs. Rs7.7bn in FY21) and it is expected to come down further by FY23-end. We have marginally raised our Mar’23 TP to Rs500 (Rs490 earlier) to factor in higher cash on books. We believe the merged entity can cater to a larger EPC market.​

    Kalpataru PowerAgencies
    Emkay Global Financial Services has buy call on Kalpataru Power Transmissions Ltd. with a target price of Rs 500.0. The current market price of Kalpataru Power Transmissions Ltd. is Rs 361.75 Time period given by analyst is year when Kalpataru Power Transmissions Ltd. 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 5394.24 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 has 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 has reported net profit after tax of Rs 115.00 Crore in latest quarter.

    Investment Rationale:
    The brokerage cut its FY23E/FY24E EPS by 6.7%/3.7% as it now factored in lower EBITDAM. Any correction in commodity prices can lead to an upgrade, though we do not factor it in presently amid volatility. There has been an improvement in net debt(FY22: Rs4.1bn vs. Rs7.7bn in FY21) and it is expected to come down further by FY23-end. We have marginally raised our Mar’23 TP to Rs500 (Rs490 earlier) to factor in higher cash on books. We believe the merged entity can cater to a larger EPC market.

    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.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in