Kalpataru Projects continues to maintain a 20-25% market share in the transmission and distribution opportunity pipeline while it is affected in the near term by delayed payments on the water segment. We expect its T&D, buildings and factories, and oil and gas segments to drive growth going forward.
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Kalpataru Projects International Ltd. reported a broadly in-line revenue growth of 16% YoY, while its Ebitda/PAT grew 17%/9% YoY. PAT was hit by higher-than-expected interest expenses, as the collections from Water projects continued to be delayed.
Kalpataru Projects continues to maintain a 20-25% market share in the transmission and distribution opportunity pipeline while it is affected in the near term by delayed payments on the water segment. We expect its T&D, buildings and factories, and oil and gas segments to drive growth going forward.
Benign commodity prices provide comfort on margin expansion, and interest expenses are likely to come down after the recent fundraising via QIP. The promoter pledge has already come down to around 8% of the total shareholding, and with the expected IPO of the real estate arm, we expect this to gradually reduce further.
We cut our estimates by 13%/12%/11% for FY25E/26E/27E to factor in weaker-than-expected Water segment performance and slightly higher interest costs. We revise our SoTP-based target price down to Rs 1,200 based on 17x P/E. We reiterate our Buy rating on the stock.
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. Read more on Research Reports by NDTV Profit.Kalpataru is currently trading at 16.1x/12.1x FY26E/FY27E EPS, the brokerage reiterates Buy rating with a revised SoTP-based target price of Rs 1,200, based on 17x P/E for the core business. Read MoreResearch Reports
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