Anand Rathi maintains ‘buy’ on Kalpataru Power, target price Rs 576

Anand Rathi has maintained its ‘Buy’ rating on Kalpataru Power in the long term with a target price of Rs 576. Shares of Kalpataru Power closed at Rs 401, down 3.6% while BSE Sensex closed 349.76 points up (+0.85%) at 41,565.90.

Company Financials



For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 3162.00 Crore, down -1.68 % from last quarter Sales of Rs 3216.00 Crore and up 14.67 % from last year same quarter Sales of Rs 2757.48 Crore Company has reported net profit after tax of Rs 137.00 Crore in latest quarter.

The company’s top management includes Mr.Imtiaz Kanga, Mr.K V Mani, Mr.Manish Mohnot, Mr.Mofatraj P Munot, Mr.Narayan K Seshadri, Mr.Parag Munot, Mr.Sajjanraj Mehta, Mr.Vimal Bhandari, Ms.Anjali Seth. Company has B S R & Co. LLP as its auditors As on 31-12-2019, the company has a total of 154,715,470 shares outstanding.

Investment Rationale

Despite its operating leverage, the company expects to sustain margins at FY19 levels due to higher execution in the low-profitable business (railways and pipelines). On the monetisation of three assets, surplus cash would be used to repay debt and reduce interest costs in FY21.