Shares of this midcap company jumped up to around 3 percent in Tuesday’s trading session after receiving new orders worth Rs 2,333 crores. The shares have delivered a multibagger return of 123 percent to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 18,958 crores, the shares of Kalpataru Projects International Ltd started Tuesday’s trading session on a higher note at Rs. 1,209 compared to its previous close of Rs. 1,173.35. During the trading session, the shares hit a high of Rs. 1,213, gaining around 3 percent and are currently trading at Rs. 1,167 apiece.
What Happened:
Such a positive movement in the share price was observed after the company in an exchange filing announced that it had along with its joint ventures and international subsidiaries secured new orders worth Rs 2,333 crores.
The company received orders for Transmission & Distribution (T&D) business in India and overseas markets, an EPC order for an industrial plant in the metal industry, and a residential building order in India.
Financials:
Looking at the company’s financial performance, the revenue zoomed by 22 percent from Rs. 4,896 crores during the December quarter to Rs. 5,971 crores in the March quarter. In addition, the net profits jumped by 17 percent from Rs. 144 crores to Rs. 169 crores during the same period.
Order Book:
As of March 2024, the company holds a strong order book totalling Rs. 58,415 crores. Of these orders, 35 percent originate from the Transmission & Distribution sector, 19 percent from the B&F sector, and the remaining 46 percent from segments including Water, Oil & Gas, Railways, and Urban Infrastructure.
Future Outlook:
The company aims to achieve revenue growth exceeding 20 percent in FY25, alongside targeting a PBT margin of around 5 percent, aiming for an improvement of 25-50 basis points. Additionally, it is focusing on bolstering its balance sheet through effective management of working capital and the divestment of non-core assets.
Important Financial Ratios:
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 9.33 percent during FY 22-23 to 9.92 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 14.57 percent to 16.81 percent during the same timeframe.
Company Profile:
Incorporated in 1981, Kalpataru Power Transmission Ltd is a global EPC player with diversified interests in power transmission and distribution, oil and gas pipelines, railways and biomass-based power generation.
Written By Vaibhav Patil
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