Brokerages hike target price on Kalpataru Projects as Q4 net profit jumps 21% on-year
Brokerages hike target price on Kalpataru Projects as Q4 net profit jumps 21% on-year
Brokerages increased their target prices on Kalpataru Projects after the engineering and capital goods player’s earnings came in over expectations.
Kalpataru Projects recorded a net profit of Rs 169 crore for the quarter, marking a 20.7 percent increase from the Rs 140 crore reported in the corresponding period last year.
At 9.25 am, shares of Kalpataru Projects were quoting Rs 1,177.65 on the NSE, lower by 0.85 percent.
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The revenue growth was led by healthy project execution in the transmission and distribution (T&D), water, and urban infra segments, said Motilal Oswal.
The company continues to see benefits from an improved prospect pipeline across key segments of T&D and building and factories (B&F) segments. As a result of the increasing capex spends in T&D from India, Europe, Africa, and Latin America, order inflows have grown 47 percent on-year to Rs 43,400 crore.
The B&F segment is diversifying its presence across residential, commercial, data centre, and industrial projects, leading to a 74-percent YoY growth in order inflows.
Analyst views
“Order inflows were weak in the water and railways segments, but oil & gas order inflows jumped ~3x on large order win from Saudi Aramco,” said Motilal Oswal.
The brokerage raised its target price on Kalpataru Projects to Rs 1,360 per share, maintaining its buy call.
Nuvama Institutional Equities maintained its buy call, increasing the target price to Rs 1,405, up from Rs 1,080 earlier. “The firm’s lead growth indicators are improving with better visibility on order flows and operating performance,” said the brokerage.
Kalpataru Projects shares have gained around 125 percent over the past year, more than doubling investors’ wealth. In comparison, the frontline Nifty 50 index has gained around 22 percent during the same time period.
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