Kalpataru Power surges 9% on securing orders worth Rs 1,345 crore

Shares of Kalpataru Power Transmission (KPTL) surged 9 per cent to Rs 440 on the BSE in Tuesday’s intra-day trade after the company & its international subsidiaries secured new orders / notification of awards worth Rs 1,345 crore.

The company received orders in India and overseas market in the transmission & distribution (T&D) business. The orders are also for pipeline laying works and for metro rail electrification in India (Secured in joint venture / consortium).

KPTL is one of the largest specialized EPC companies engaged in power transmission & distribution, oil & gas pipeline, railways and civil infrastructure business. KPTL is currently executing projects in over 30 countries and has global footprints in 67 countries.

Through its subsidiary, JMC Projects (India) Limited (JMC), KPTL also provide civil contracting services for Buildings & Factories, Water Infrastructure, Highways and Metro construction. KPTL is also present in the agricommodity warehousing sector through its subsidiary Shree Shubham Logistics.

Meanwhile, KPTL’s management has guided for 15 per cent sales growth for FY23, with EBITDAM of around 9 per cent. While order inflow guidance stands at Rs 21,000 crore, it is expected to be revised upwards if the current inflow momentum continues. In the past few years, JMC’s order book has seen multi-fold increase owing to significant wins in the water business and uptick in the building and factories segment.

On the KPTL-JMC merger front, no objection has been received from SEBI and stock exchanges; petition has been filed with NCLT and merger is expected by FY23-end. Analysts at Emkay Global Financial Services believe improving inflow and lower raw-material cost will imply better earnings for KPTL in the coming times. The risks include any slowdown in ordering, the brokerage firm said in June quarter result update.

At 02:57 pm; KPTL traded 7 per cent at Rs 432, as compared to 0.05 per cent decline in the S&P BSE Sensex. The stock hit a 52-week high of Rs 451.95 on October 18, 2021.

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