ICICI Direct maintains buy on Kalpataru Power Transmission, target price Rs 534

ICICI Direct has maintained a Buy rating on Kalpataru Power Transmission in the long term with a target price of Rs 534. Shares of Kalpataru closed at Rs 460 apiece, up 2.2% on Thursday while the BSE Sensex fell 76.47 points to 40,575.17.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 3216.00 crore, up 16.06 % from last quarter sales of Rs 2771.00 crore and up 29.42 % from last year same quarter sales of Rs 2485.00 crore. The company has reported net profit after tax of Rs 145.00 crore in the latest quarter.


Investment Rationale

The company’s order book with good traction in non T&D business and improved performance of its subsidiaries is expected to register a consistent growth, the brokerage said. Also, strategy to monetise non-core assets and sales proceeds from three transmission assets would improve return ratios.