Shares of this small-cap stock have been on the rise during the past one year and the BSE prices reflect returns of over 50 percent to its stakeholders.
The stocks of Kalpataru Projects International Limited (KPIL) opened their trading hour at Rs 566.45 and currently trade at Rs 555 indicating a dip of 0.60 percent compared to the previous closing levels of Rs 558.25. The company has a market capitalization of Rs 9,000 crores. The company’s stock is nearing its 52-week high level of Rs 597.
In the month of April 2021, Kalpataru Power Do Brasil Participacoes Ltd, a wholly-owned subsidiary of KPIL, acquired a 51 percent stake in ‘Fasttel Engenharia Ltd’, a Brazilian EPC Company.
In a recent filing with the BSE, the company provided an update on the same and informed about the acquisition of the remaining 49 percent in Fasttel for consideration of 9710.90 Brazilian Real (BRL).
Comparing the company’s valuation ratios with the industry numbers, the company’s numbers exhibit an ‘undervalued’ nature with the Price-to-Earnings ratio (P/E) standing at 23.30, nearly a 50 percent discount to the industry P/E of 46.10. Moreover, the Price-to-Book Value (P/BV) ratio is reported at 1.90 as compared to the industry P/BV of 3.60.
Coming onto the financials, the company, in the recent quarter period, has been able to report decent growth in the basic financial metrics such as the operating revenues as well as net profits. The operating revenues went up from Rs 4,004 crores during Q3FY22-23 to Rs 4,882 crores in Q4FY22-23, and, the profits going up from Rs 109 crores to Rs 140 crores.
In addition to the above, the company announced an all-time high order book of $5.6 Billion during FY22-23 with 60 percent of orders from the domestic markets and the rest being from international sources.
Headquartered in India, Kalpataru Projects International Limited is a company engaged in the construction industry with activities in the Infrastructure and Power Transmission space. The company is organized into two operating units namely the Engineering, Procurement & Construction (EPC) and Developmental Project businesses.
Written by Amit Madnani
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