Share of Kalpataru Power Transmission Limited has delivered 112 per cent return to its shareholders in the last 12 months. The share stood at Rs 228.6 on August 3, 2020. It has zoomed to Rs 485.75 today, translating into gains of 112 per cent during the period. In comparison, Sensex rose 41 per cent in one year.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 10.62 lakh today.
The stock has been gaining for the last three trading sessions and rose 3 per cent to hit an intraday high of Rs 485.75 on BSE today. With a market capitalisation of Rs 7,144.6 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
According to MarketsMojo, the company has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.45 times. Also, it has high management efficiency with a high ROCE of 20.93%.
The technical trend has improved from Mildly Bullish on July 5, 2021, and the stock is technically in a Bullish range now and has generated 14 per cent return since then. Multiple factors for the stock are bullish like MACD, Bollinger Band, KST and OBV.
Also, the stock is trading at a fair value compared to its average historical valuations and the valuation seems to be very attractive. It is also among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks.
The company reported a net profit of Rs 174 crore for the quarter ended March 2021. Profit in the year-ago period stood at Rs 31 crore. Revenue from operations grew 16 per cent to Rs 4,086 crore in the March-ended quarter against Rs 3,527 crore a year ago. The EPS has increased to Rs 11.68 in March 2021 from Rs 2.00 in March 2020.
Recently, JMC Projects (India) Limited (JMC), a subsidiary of Kalpataru Power Transmission Limited, secured new orders of Rs. 1,624 crore (Road Project in Ghana of Rs 1,128 crore and Building Projects in India of Rs 496 crore).
Commenting on securing new orders, Mr. S. K. Tripathi (CEO & Managing Director) commented, "We are pleased with the new order wins across our Buildings and Infra businesses. The international order marks our foray into Ghana. This also helps us bolster our international order book reinforcing our thrust to diversify internationally in the EPC market. Our current year order inflow has reached Rs.4,659 crore and additionally, we have good visibility across our businesses. JMC's order book visibility coupled with robust executional performance gives us the confidence of sustained growth in the years ahead."
ICICI Direct noted that strategy to monetise non-core assets & utilise proceeds towards debt reduction and acquisitions in growing international markets would further strengthen its balance sheet.
"Despite short term challenges amid pandemic and rising commodity prices, we believe KPTL’s strong order book with good traction in the non-T&D business (railways, pipeline), improved subsidiary performance would aid consistent growth in the medium term," the brokerage firm said.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today