Shares of Kalpataru Projects International have gone down close to 5% since the company posted its results last Thursday, but analysts see the stock making a massive comeback going forward.
The Kalpataru Analysts: Parikshit D Kandpal-led analyst team at HDFC Securities maintained the “buy” rating for the stock with a price target of ₹959. The target indicated an over 51% upside from the stock’s last closing price of ₹631.75.
The Kalpataru Thesis: Analysts noted that the company’s performance in the September quarter was muted. The company’s revenue, EBITDA and adjusted PAT all missed the brokerage estimates by 2%, 9% and 21% respectively. As per the brokerage firm, the “margin was impacted by the revenue mix tilt towards legacy projects.”
However, the domestic brokerage was impressed by the company’s robust order book. The firm highlighted that Kalpataru secured new orders worth around ₹12,100 crore in the last seven months. The order book stands at around ₹47,000 crore. The company has guided for new order inflow of around ₹24,000-25,000 crore.
“Given the robust order booking, improving growth outlook, and stable margins,” the firm continued its positive view on the stock.
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Price Action: Kalpataru’s share price was down 1.60% to trade at ₹621.65 in the early hours of trading on Monday.
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