'Buy' Kalpataru Projects International Maintains Motilal Oswal, Stays 'Neutral' On KEC — Here's Why

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Motilal Oswal Report

The Central Electricity Authority’s ordering pipeline has started building up from the last few months after witnessing some moderation during the initial months of FY26.

Our interactions with KEC International Ltd. and Kalpataru Projects International Ltd. also suggest that the transmission ordering pipeline remains strong for next few years. Moreover, these companies are targeting high voltage direct cables projects, international opportunities, and other non-T&D opportunities to grow.

Commodity prices are comfortable and hence, margins should improve from FY26 onward. We maintain our estimates and expect T&D segment to remain a dominant segment for both KEC and KPI.

We maintain Buy on KPI (target price: Rs 1,450) and Neutral on KEC (target price: Rs 950).

Key risks and concerns

Slowdown in execution, lower-than-expected order inflows, sharp rise in commodity prices, an increase in receivables and working capital, increase in promoter pledge are some of the key concerns that can weigh on financials and valuations.

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