Please refer to important disclosures at the end of this report
1
Kalpataru Power Transmission Limited (KPTL) is amongst the largest players
firmly entrenched in the global power transmission and infrastructure EPC space.
While there is surplus capacity and low utilization of existing capacity among
power generation firms, the stage is all set for revenue and order book growth
for power transmission and distribution (T&D) firms. At the end of Q3FY17 orde
r
book stood at ~`8300cr. In domestic market, KPTL continues to see health
y
traction from 5/6 SEBs, further 45 BOOT/BOOM projects funded by REC/PFC
are up from bidding in next few months. In the international market compan
y
have projects worth `4,000 - 5,000crore to be bid between now and May on the
domestic front it is the same number. KPTL has recently announced that it has
secured new orders worth `1,200crore. The company continue to build thei
r
portfolio of projects in railways EPC sector, which will be a key growth drive
r
going forward. KPTL which has so far enjoyed a strong foothold in engineering
jobs for the power transmission sector and is scaling up its business in pipeline
and railways. Share of pipeline and railways has already increased to 15 pe
r
cent and getting into next year, management expects it to be 20-25 per cent.
Clearly, the growth in these new businesses is and will remain higher, but
transmission would continue to be company’s most significant business. In FY17,
the management expects revenue growth to be at 15-20% with margin o
f
~10.5%. Gross debt is estimated to be ~`7bn were as KPTL is targeting interest
cost, as a % of sales, at less than 2.5% for FY18. KPTL continue to draw strength
from its established position in the power transmission and distribution
infrastructure (TDI) sector with growing international presence and its strong
order book. Hence Buy.
BUY
CMP `319
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 59.5
MF / Banks / Indian Fls 24.7
FII / NRIs / OCBs 6.9
Indian Public / Others 8.9
Abs. (%) 3m 1yr 3yr
Sensex 11.3 17.0 32.7
KPTL 28.8 52.0 226.5
.
0.6
Reuters Code KAPT.BO
2
BSE Sensex 29,647
Nifty 9,174
Face Value (
`
)
Capital Goods
Market Cap (
`
cr) 4,900
52 Week High / Low 328/202
Avg. Daily Volume 36,165
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Kalpataru Power Transmission
Others | Capital Goods
March 31, 2017
Kalpataru Power Transmission | Capital Goods
March 31, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Kalpataru Power Transmission
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
eriod
: Reduce
(
-5% to -15%
)
Sell
(
< -15
)