Shares of this small-cap infrastructure company are gaining investor interest due to its impressive order book, which stands at nearly 300 percent of its market cap. Engaged in executing large-scale projects across various sectors, the company has been steadily expanding its operations.
Share Price Movement
During Wednesday’s trading session, Kalpataru Projects International Ltd’s share price gained 3.2 percent, reaching an intra-day high of Rs.1,340.00 per share from its previous close of Rs.1,297.20 apiece. The share price has retreated since then and is currently trading at Rs.1,310.85 per share. The stock has fallen 11 percent from its all-time high of Rs.1,449.00 per share.
What happened
With a market capitalization of Rs.22,064.67 crore, Kalpataru Projects International Ltd. is a leading infrastructure company engaged in power transmission and distribution, railways, oil and gas pipelines, and civil construction.
It operates in over 70 countries, executing engineering, procurement, and construction (EPC) projects. The company focuses on delivering integrated solutions, including design, manufacturing, and commissioning, across diverse sectors.
The order book of Kalpataru Projects International Ltd. stands at Rs.60,631 crore as of September 2024. The company achieved record order inflows of Rs.11,865 crore, including Rs.835 crore announced recently.
Approximately 90 percent of the orders are from the Transmission & Distribution (T&D) and Buildings & Factories (B&F) segments. Additionally, it holds an L1 position for orders worth Rs.7,000 crore, with over 75 percent of these in the domestic T&D business.
Management Guidance
The company has maintained its revenue guidance provided during Q1, despite reporting approximately 5 percent revenue growth in the first half (H1) and acknowledging a high ask rate for the second half (H2). Additionally, the earlier Profit Before Tax (PBT) guidance of 4.5 percent to 5 percent remains unchanged.
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Financial Performance
According to its recent financial update, Kalpataru Projects reported net sales of Rs.4,930 crore for Q2 FY25, marking a 9 percent increase from Rs.4,518 crore in the same quarter last year. Moreover, the company’s net profit increased 40 percent to Rs.126 crore, up from Rs.90 crore in the same period.
Company Overview
Kalpataru Projects International Ltd is a prominent global Engineering, Procurement, and Construction (EPC) company based in India, specializing in infrastructure projects across various sectors, including power transmission, oil and gas, railways, and urban development.
With over four decades of experience, the company operates in more than 70 countries, demonstrating its substantial global presence and diversified project portfolio.
Written by – Siddesh S Raskar
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