Kalpataru Projects: Emkay Global Sees Target Price of Rs 1450

Kalpataru Projects International (KPIL) Analyst Meet Highlights

Key Takeaways

• Kalpataru Projects International (KPIL)'s current exposure in the Middle East (ME) remains low at approximately 10% of its overall orderbook.
• The management expects a potential revenue impact of USD20-30mn in Q4FY26 due to supply-related challenges in the Power T&D business.

Business Updates

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• Both Raipur and Gandhinagar plants are operating at 80% utilization due to lower gas supply, with the company indicating the use of LDO as an alternative.
• The Water business has seen movement in payments release, with KPIL receiving a payment of approximately Rs6bn in Q4. Current outstanding payments exceed Rs10bn.
• Power T&D and Building and Fabrication (B&F) segments are expected to drive growth, along with a gradual improvement in EBITDA margin.

Outlook and Recommendations

• The management continues to repay debt, further strengthening the company's balance sheet.
• We maintain a BUY rating with a target price of Rs1,450.