Kalpataru Projects International skyrockets to 52-week high after EPC firm bags mega orders

Kalpataru Projects International Ltd (KPIL) shares skyrocketed to a 52-week high on Friday after the engineering, procurement and construction (EPC) company said it, along with its joint ventures and international subsidiaries, secured fresh orders to the tune of Rs 3,244 crore. The stock of KPIL zoomed by as much as Rs 70.9, or 10.8 per cent, to Rs 729.6 apiece on BSE, surpassing a recent peak of Rs 723.5 scaled more than three weeks ago. 

At 11 am, Kalpataru Projects shares held on firmly to the green with a gain of nine per cent for the day at Rs 718 apiece. 

In a regulatory filing, issued before the start of trade on Friday, the company said orders in its buildings and factories unit included the company's largest ever design-and-build contract for the construction of a large residential buildings project in the southern region of the country with a buildup area of about 13 million square feet from a reputed developer. 

The orders included projects to design and construct an underground metro rail project, signifying its foray into electric mobility with a tunnel boring machine (TBM) scope, it said.

The company also won orders in its transmission and distribution (T&D) unit from overseas markets. 

“We are delighted to announce strategic order wins across diverse businesses. Our foray into underground metro rail tunneling project reaffirms our commitment to sustainable urban infrastructure development," said Manish Mohnot, MD and CEO, KPIL.

He also said that the company's order inflows for the financial year so far stood at approximately Rs 17,685 crore, "providing a robust foundation for sustained future growth”. 

What does Kalpataru Projects International Ltd (KPIL) do?

KPIL is a specialised EPC company engaged in a wide range of businesses, including power Transmission and distribution, buildings and factories, water supply and irrigation, railways, oil and gas pipelines, urban mobility, highways and airports.

KPIL shares: Past performance

KPIL shares are on track to finish the calendar year with a gain of more than 36 per cent, sharply outperforming a 19 per cent rise in the headline Nifty50 index.

What analysts say

Last month, ICICI Securities maintained a 'buy' rating on KPIL with a target of Rs 774 citing a stable quarterly performance and well-managed working capital. 

However, the brokerage lowered its earnings estimates for the EPC company by 9-10 per cent for the financial years 2023-24 and 2024-25 on lower revenue guidance and other income.

"We introduce FY26E estimates with revenue and PAT growth of 12 per cent and 16 per cent, respectively, and EBITDA margin of 8.1 per cent. We expect RoE to improve after an exit from non-core assets, further improving working capital and margins," analysts at the brokerage wrote in a research report. 

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