External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Kalpataru Power Transmission / Equity Bottom-Up

<ul><li>Over the years, KPTL has always traded at a discount to KEC International due to concerns around capital allocation (investment in several Transmission assets and Road assets as well as other non-core investments) and promoter pledge.</li><li>We argue that given the company’s merger process being under way, no more investments expected in non-core assets and the anticipated gradual decrease in promoter pledge, its valuation gap with direct peers like KEC should become negligible.</li><li>We now value the KPTL standalone entity at 15x (at par with KEC’s exit P/E) vs 13.5x earlier, to arrive at our SoTP-based Dec-23 TP of Rs615/share (earlier, Rs565).</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Over the years, KPTL has always traded at a discount to KEC International due to concerns around capital allocation (investment in several Transmission assets and Road assets as well as other non-core investments) and promoter pledge.We argue that given the company’s merger process being under way, no more investments expected in non-core assets and the anticipated gradual decrease in promoter pledge, its valuation gap with direct peers like KEC should become negligible.We now value the KPTL standalone entity at 15x (at par with KEC’s exit P/E) vs 13.5x earlier, to arrive at our SoTP-based Dec-23 TP of Rs615/share (earlier, Rs565).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kalpataru Power Transmission - Towards a Stronger Entity