Brokers' call: KPTL
HSBC has reiterated its ‘Overweight’ rating on Kalpataru Power Transmission with a target price of Rs 120.
By ET Bureau | Updated:
KPTL may Touch Rs 120: HSBC
HSBC has reiterated its ‘Overweight’ rating on Kalpataru Power Transmission with a target price of Rs 120. Weak execution, particularly at KPTL, was a key criticism for the company last year.
However, since Q4 FY12 the execution has shown significant improvement in both Q4 and Q1, and KPTL has managed to deliver 20% sales growth in both these quarter. “We believe that a strong order book in KPTL places company in a good position to continue to deliver growth; however given the lumpy nature of the business we remain conservative in our growth estimates and forecast KPTL sales growth of c14.5% in FY13 and c11.8% in FY14,” said the report.
HSBC has reiterated its ‘Overweight’ rating on Kalpataru Power Transmission with a target price of Rs 120. Weak execution, particularly at KPTL, was a key criticism for the company last year.
However, since Q4 FY12 the execution has shown significant improvement in both Q4 and Q1, and KPTL has managed to deliver 20% sales growth in both these quarter. “We believe that a strong order book in KPTL places company in a good position to continue to deliver growth; however given the lumpy nature of the business we remain conservative in our growth estimates and forecast KPTL sales growth of c14.5% in FY13 and c11.8% in FY14,” said the report.
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