In this report the brokerage highlights Kalpataru Projects' improving financial metrics, with RoCE projected to rise from 10.7% in FY25 to 14.2% in FY28, aided by working capital optimization and non-core asset monetization. Net debt reduction and healthy cash flows further strengthen the balance sheet.
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Systematix Report
Systematix has initiated coverage on Kalpataru Projects International Ltd. with a 'Buy' rating and a target price of Rs 1,380, implying a 18% upside from the current market price of Rs 1,189.
The brokerage values the company at 16x FY28E EPS, citing strong growth visibility across transmission and distribution, buildings and factories, and oil and gas segments.
Kalpatru International is a diversified EPC leader with a dominant position in India's T&D space and a growing international footprint across LATAM, Middle East, Africa, and Nordic regions.
The company's order book stood at Rs 645 billion at FY25-end, with 41% contribution from overseas markets, ensuring multi-year revenue visibility.
Systematix expects 17% revenue CAGR and 36% PAT CAGR over FY25–28, supported by robust order inflows and margin expansion of ~70bps to 8.9% by FY28.
Key growth drivers include India's Rs 9.15 trillion transmission capex plan under the National Electricity Plan, rising investments in renewable evacuation projects, and strong traction in buildings and factories from marquee real estate developers and emerging segments like airports and data centers.
Internationally, Kalpataru's subsidiaries—Linjemontage (Sweden) and Fasttel (Brazil)—are positioned to capitalize on grid modernization and renewable integration opportunities.
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