BSE:522287

Stock Analysis Report

Kalpataru Power Transmission

Executive Summary

Kalpataru Power Transmission Limited provides engineering, procurement, and construction (EPC) services relating to power transmission and distribution, civil construction, railway track laying and electrification, and oil and gas pipelines laying in India.

Rewards

Trading at 52.3% below its fair value

Earnings are forecast to grow 13.96% per year

Earnings grew by 22.8% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Kalpataru Power Transmission's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 522287's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.6%

522287

-1.5%

IN Construction

-0.7%

IN Market


1 Year Return

6.0%

522287

-1.9%

IN Construction

10.0%

IN Market

Return vs Industry: 522287 exceeded the Indian Construction industry which returned -1% over the past year.

Return vs Market: 522287 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

522287IndustryMarket
7 Day-6.6%-1.5%-0.7%
30 Day-18.1%-4.0%-0.3%
90 Day-20.0%-5.8%3.2%
1 Year6.6%6.0%-0.6%-1.9%12.0%10.0%
3 Year30.3%27.9%11.6%7.6%23.9%17.1%
5 Year60.5%55.4%14.1%7.6%38.3%25.6%

Price Volatility Vs. Market

How volatile is Kalpataru Power Transmission's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kalpataru Power Transmission undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 522287 (₹367.55) is trading below our estimate of fair value (₹770.45)

Significantly Below Fair Value: 522287 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 522287 is poor value based on its PE Ratio (11x) compared to the Construction industry average (10.4x).

PE vs Market: 522287 is good value based on its PE Ratio (11x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 522287 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 522287 is overvalued based on its PB Ratio (1.7x) compared to the IN Construction industry average (0.6x).


Next Steps

Future Growth

How is Kalpataru Power Transmission forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 522287's forecast earnings growth (14% per year) is above the savings rate (6.5%).

Earnings vs Market: 522287's earnings (14% per year) are forecast to grow slower than the Indian market (21.5% per year).

High Growth Earnings: 522287's earnings are forecast to grow, but not significantly.

Revenue vs Market: 522287's revenue (5.6% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: 522287's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 522287's Return on Equity is forecast to be low in 3 years time (15.6%).


Next Steps

Past Performance

How has Kalpataru Power Transmission performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 522287 has high quality earnings.

Growing Profit Margin: 522287's current net profit margins (4.1%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: 522287's earnings have grown significantly by 29.2% per year over the past 5 years.

Accelerating Growth: 522287's earnings growth over the past year (22.8%) is below its 5-year average (29.2% per year).

Earnings vs Industry: 522287 earnings growth over the past year (22.8%) exceeded the Construction industry 4.8%.


Return on Equity

High ROE: 522287's Return on Equity (15.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kalpataru Power Transmission's financial position?


Financial Position Analysis

Short Term Liabilities: 522287's short term assets (₹114.4B) exceed its short term liabilities (₹86.4B).

Long Term Liabilities: 522287's short term assets (₹114.4B) exceed its long term liabilities (₹31.2B).


Debt to Equity History and Analysis

Debt Level: 522287's debt to equity ratio (83.1%) is considered high.

Reducing Debt: 522287's debt to equity ratio has reduced from 148.1% to 83.1% over the past 5 years.

Debt Coverage: 522287's debt is well covered by operating cash flow (37.2%).

Interest Coverage: 522287's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 522287 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 522287's debt is covered by short term assets (assets are 4x debt).


Next Steps

Dividend

What is Kalpataru Power Transmission's current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.6%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 522287's dividend (0.82%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 522287's dividend (0.82%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 522287's dividend payments have been volatile in the past 10 years.

Growing Dividend: 522287's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.9%), 522287's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Manish Mohnot (46yo)

2.8yrs

Tenure

₹118,700,000

Compensation

Mr. Manish Mohnot, CA, ICWA, has been Managing Director of Kalpataru Power Transmission Limited since June 1, 2015 and its Chief Executive Officer since April 1, 2017. Mr. Mohnot has been an Executive Dire ...


CEO Compensation Analysis

Compensation vs Market: Manish's total compensation ($USD1.66M) is above average for companies of similar size in the Indian market ($USD386.20K).

Compensation vs Earnings: Manish's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mofatraj Munot
Executive Chairman2.8yrs₹140.00m6.47% 3.7b
Manish Mohnot
MD, CEO & Executive Director2.8yrs₹118.70mno data
Kamal Jain
Director of Procurement & Operations1.1yrs₹26.40m0.00032% 182.3k
Sanjay Dalmia
Executive Director1.5yrs₹62.47m0.010% 5.9m
Ram Patodia
President of Finance & Accounts and CFO0.8yrsno datano data
M. Baraiya
President of Human Resources & Administration0yrs₹4.01mno data
Rajeev Dalela
Company Secretary & Compliance Officer0yrsno datano data
Gyan Prakash
President & CEO of (Oil & Gas)0yrsno datano data
Subhasish Mukherjee
President of International Business0yrs₹1.20mno data
Ramesh Bhootra
President of International Business0yrsno datano data

1.1yrs

Average Tenure

61yo

Average Age

Experienced Management: 522287's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mofatraj Munot
Executive Chairman2.8yrs₹140.00m6.47% 3.7b
Manish Mohnot
MD, CEO & Executive Director2.8yrs₹118.70mno data
Sanjay Dalmia
Executive Director1.5yrs₹62.47m0.010% 5.9m
Vimal Bhandari
Non-Executive Independent Director17.7yrs₹4.20mno data
Narayan Seshadri
Non-Executive Independent Director13.1yrs₹4.00mno data
Parag Munot
Promoter Director28.4yrs₹17.30m4.96% 2.8b
K. Mani
Non-Executive Independent Director6.1yrs₹1.70mno data
Imtiaz Kanga
Non-Executive Director3.9yrs₹1.50m0.26% 147.3m
Sajjanraj Mehta
Non-Executive Independent Director21.6yrs₹5.90m0.0065% 3.7m
Anjali Seth
Non-Executive Independent Director4.9yrs₹2.10mno data

9.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 522287's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kalpataru Power Transmission Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kalpataru Power Transmission Limited
  • Ticker: 522287
  • Exchange: BSE
  • Founded: 1981
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹56.974b
  • Shares outstanding: 154.72m
  • Website: https://www.kalpatarupower.com

Location

  • Kalpataru Power Transmission Limited
  • 101, Kalpataru synergy
  • 7th Floor
  • Mumbai
  • Maharashtra
  • 400055
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
522287BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2000
KALPATPOWRNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2000

Biography

Kalpataru Power Transmission Limited provides engineering, procurement, and construction (EPC) services relating to power transmission and distribution, civil construction, railway track laying and electrification, and oil and gas pipelines laying in India. It designs, tests, manufactures, fabricates, erects, and constructs transmission lines, oil and gas infrastructure, and railways projects on a turnkey basis. The company also provides EPC contracting services for cross-country pipelines, terminals, and gas gathering stations across various territories; and EPC services for executing civil infrastructure, bridges, new track laying, track rehabilitation, gauge conversion, signaling and telecommunication, and over-head electrification projects for railways. In addition, it engages in the high voltage substation business in air insulated and gas insulated; and operation of two biomass power generation plants in Rajasthan, India. Further, the company undertakes an array of activities in the post-harvest value chain for agri-commodities, including warehousing, primary processing, collateral management, funding facilitation, funding, testing and certification, and pest management. It operates in 55 countries. Kalpataru Power Transmission Limited was incorporated in 1981 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 12:32
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.