BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Report
Key takeaways from Kalpataru Power Transmission Ltd.'s FY20 Annual report are as follows:
1) geographically a well diversified order book and robust bid pipeline;
2) standalone profitability stable and moderate; consolidated profitability dragged by subsidiaries performance, mainly pertaining to build-operate-transfer (BOT) assets;
3) while borrowings increased by 25%, it is still quite comfortable (net debt to equity ratio at 0.29); and
(4) investment/loans worth Rs 1,650/Rs 320 million given to Shree Shubham Logistics Ltd.
Multiple triggers are in place for further rerating with:
1) resumptions of near 75-80% execution in Jun-20, (2) likely receipts of monetisation proceeds of three build-own-operate-transfer (BOOT) transmission assets during FY21E worth Rs 10 billion plus, and (3) restructuring of JMC Project India Ltd. three Roads BOTs, which shall reduce cash burnout.
The overhang of the promoter group's real estate exposure will continue to restrict multiple rerating.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
