Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Research

| More

Kalpataru Power Transmission - 3QFY17 Result Update - Growth Momentum Continues; Strong Order Book Offers High Revenue Visibility - Reliance Securities

Posted On: 2017-02-18 23:36:09

Kalpataru Power Transmission (KPTL) has delivered a strong performance in 3QFY17, aided by better execution of projects. Though its standalone revenue grew by 29% YoY, its subsidiaries reported decline in revenue. JMC Projects' revenue declined by 4.8% YoY with margins at 8.8%, while Shree Shubham Logistics' revenue plunged by 55% impacted by demonetization. We expect KPTL to be a key beneficiary of strong transmission capex in both domestic and global markets. Backed by strong order book, KPTL is expected to sustain growth momentum in revenue and earnings, going forward, which would lead to improvement in return ratios in next two years. We maintain our BUY recommendation on the stock with an SOTP-based revised Target Price of Rs342.

Key Highlights

- Better Execution Boosts Standalone Net Sales: KPTL's standalone revenue grew by 29% YoY led by better execution (especially the international projects), while it expects revenue growth at 15-20% with margin of ~10.5% in FY17E. However, its subsidiaries i.e. JMC Projects (JMC) and Shree Shubham Logistics (SSL) reported revenue decline of 4.8% YoY and 55%, YoY respectively. Looking ahead, JMC is expected to report healthy growth led by pick-up in execution in infra orders and other government projects, while we expect SSL's would recover from Q1FY18 onwards owing to higher availability of crops during Rabi season.

- Standalone EBIDTA Margin at 10.3%; PAT Zooms: KPTL's standalone EBITDA margin improved by 22bps YoY to 103%, while PAT margins increased by 92bps to 5.0%. Its reported standalone PAT increased by 58.2% YoY to Rs574mn. Looking ahead, Management does not see any impact on margins due to rise in commodity prices as ~60% of order book is pass-through and 40% is fixed in nature. EBITDA margin & PAT margin of JMC stood at 8.8% and 1.3%, respectively.

- Order Book: As of Dec'16, KPTL has standalone order book in excess of Rs83bn, with 55% of order book from international markets, In 4QFY17 QTD, it secured orders worth >Rs16.5bn while JMC's order book stands at ~Rs68bn (including fresh orders of >Rs20.5bn).

Outlook & Valuation

We believe that strong order book and improving margins would drive 16.5% CAGR in KPTL's earnings in FY16-19E. Valuing KPTL's standalone business at Rs308 (15x FY19E standalone operational EPS), we have assigned Rs26.0 per share (applying 25% holding company discount) of value for its 67% equity in JMC. We have valued SSL on EV/EBITDA multiple at Rs8.0/share. We maintain our BUY recommendation on the stock with an SOTP-based Target Price of Rs342.

Shares of KALPATARU POWER TRANSMISSION LTD. was last trading in BSE at Rs.281.5 as compared to the previous close of Rs. 281.1. The total number of shares traded during the day was 2174 in over 148 trades.

The stock hit an intraday high of Rs. 285.45 and intraday low of 279.8. The net turnover during the day was Rs. 612690.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Result Update: Mangalore Refinery and Petrochemicals Ltd. (MRPL) - ACCUMULATE - TP Rs.144 - Kotak
Result Update: NIIT Ltd (NIIT) - BUY - TP Rs.103 - Kotak
Strategy: GST: The final lap - Kotak
Views on GlaxoSmithKline Pharmaceuticals Limited 4QFY2017 Results: Angel Broking
GST could throw some light on market in upcoming week : Amrapali Aadya Trading & Investments
What the GST rates mean for key sectors in India? - Angel Broking
Earnings Update - HCL Technologies(HCLT IN) - Industry leading growth ahead - CSEC Research
Earnings Update - Dr Reddy's Laboratories (DRRD IN) - High competition & continued pricing pressure hammered global sales - CSEC Research
Earnings Update - KPIT Technologies (KPIT IN) - Growth momentum is gaining - CSEC Research
Earnings Update - NIIT Technologies(NTL IN) - Healthy order book - CSEC Research
Earnings Update - South Indian Bank (SIB IN) - Asset quality improves on sale to ARC - CSEC Research
Earnings Update - CEAT Ltd. (CEAT IN) - Margin declined due to higher RMC - CSEC Research
Earnings Update - Bajaj finance (BAF IN) - Continues to be consistent in its core performance - CSEC Research
Earnings Update - JK Cement (JKCE IN) - Robust quarter driven by better realization - CSEC Research
Earnings Update - JKL Cement (JKLC IN) - Cost saving measures to drive the margins - CSEC Research
Earnings Update - Kajaria Ceramics (KJC IN) -Revenue growth led by volume - CSEC Research
HCL Technologies - 4QFY2017 Result Update - Angel Broking
Result Update: Kajaria Ceramics Ltd - ACCUMULATE - TP Rs.757 - Kotak
Result Update: Colgate Palmolive (India) Ltd. - SELL - TP Rs.980 - Kotak
Result Update: Chennai Petroleum Corporation Ltd (CPCL) - ACCUMULATE - TP Rs.455 - Kotak
Result Update: Siemens India Ltd - SELL - TP Rs.1170 - Kotak
Result Update: MT Educare Ltd - SELL - TP Rs.70
Initiating Coverage: Bodal Chemicals - BUY - TP Rs.210
Modified Coal Linkage Policy could be a game-changer: Angel Broking
Views on Dr.Reddy's Laboratories Ltd 4QFY2017 Results: Angel Broking
GSK Consumer (SKB IN) - Subdued revenue growth - CSEC Research
Arvind (ARVND IN) - Margin pressure continues - CSEC Research
Asian Paints (APNT IN) - Decent performance amidst challenging environment - CSEC Research
HDFC (HDFC IN) - Stable growth lead by non-retail loans - CSEC Research
Havells India (HAVL IN) - Strong revenue growth, Margin impacted due to demonetization schemes - CSEC Research
Godrej Consumer Products (GCPL IN) - Strong Operating performance - CSEC Research
Auto sales Monthly Update - April 2017 - CSEC Research
TVS Motor Company (TVS IN) - Soft performance amid rich valuations - CSEC Research
Maruti Suzuki India (MSIL IN) - Operational performance remains strong; realization improves led by product mix - CSEC Research
Result Update: Gujarat Pipavav Port Ltd (GPPL) - ACCUMULATE - TP Rs.180 - Kotak
Result Update: Asian Paints Ltd (APL) - REDUCE - TP Rs.1175 - Kotak
Result Update: The Phoenix Mills Ltd (PML) - BUY - TP Rs.477 - Kotak
Result Update: Havells India Ltd (HIL) - SELL - TP Rs.460 - Kotak
Result Update: Blue Star Ltd - ACCUMULATE - TP Rs.727 - Kotak
Result Update: HCL Technologies Ltd - REDUCE - TP Rs.879
Views on Maruti Suzuki India Ltd 4QFY2017 Results: Angel Broking
Robust numbers from Federal Bank, poised for further re-rating: Angel Broking
Views on Alembic Pharmaceuticals Ltd 4QFY2017 Results: Angel Broking
Result Update: Marico Ltd - REDUCE - TP Rs.324 - Kotak
Result Update: Kansai Nerolac Paints Ltd - ACCUMULATE - TP Rs.430 - Kotak
Rallis India - 4QFY2017 Result Update - Angel Broking
Wipro - 4QFY2017 Result Update - Angel Broking
What does the National Steel Policy (NSP) mean for steel companies? Angel Broking
ACC and Ambuja Cements move one step closer to a merger: Angel Broking
Banks - Adds clarity and urgency - Kotak


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017