Buy Kalpataru with a target of 1250: Gaurav Oza, AK Stockmart

Gaurav Oza, Sr. Equity Analyst, AK Stockmart in an interview with ET Now discusses Kalpataru Power.

Kalpataru Power, you mentioned that you like the power transmission space, if you could just tell us what exactly you like about this one?

Kalpataru Power, it is not only into power transmission but it is also having 53% stake in JMC Projects, so sometimes if there is lull in the order backlog of transmission, we can always look at the projects division as a major source of revenue. Kalpataru is having an order backlog of around 4800 crores, that was because of decent execution in quarter 1 and out of that around 61% belongs to transmission and if you come to JMC Projects, which is a 53% subsidiary. It is having an order backlog of 3800 crores at this point in time but having bided significantly in various other projects, so that is a major reason we give a buy to Kalpataru with a target price of around 1250.