KALPATARU PROJECTS INTERNATIONAL LIMITED - A buy for target of 1306

$KPIL Investment Rationale: Ÿ Kalpataru Projects International (KPIL) is a specialized EPC companies engaged in Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility (Flyovers & Metro Rail), Highways and Airports. KPIL is currently executing projects in over 30 countries and has a global footprint in 75 countries. Ÿ• Order Inflows for FY25 stood at Rs. 25,475 crores leading to highest ever closing order book of Rs. 64,495 crores as on 31st March 2025. International order accounts for 41% of the total order book. According to the management, majority of these orders are at better margins and contributed by our flagship T&D and B&F business. It has received orders of Rs. 2,372 crores till date in FY26. Ÿ• The company continue to further diversify the mix, expand to new markets and improve market position in existing business as it expects order inflows in the range of Rs. 26,000 crores to Rs. 28,000 crores for FY2026. It expects 20% revenue growth and PBT margin of 4.5% to 4.75%, which is improvement of closer to 100 basis points as compared to FY 2025. Ÿ• It continue to relentlessly focus on securing complex large size EPC projects, expanding global reach, invest in capex to improve competiveness, strengthen team and improve delivery capabilities. Ÿ• According to the management, FY26 has strong business visibility in the domestic and international markets backed by global focus on energy transition and creation of sustainable infrastructure. It expects to improve the revenue growth trajectory on back of strong order backlog and proven execution capabilities. Thus, it is expected that the stock may see a price target of Rs. 1306 in 8 to 10 months’ time frame on current P/BVx of 3.01x and FY26 BVPS of Rs.434.