Multibagger Kalpataru Projects share price jumps nearly 100% in one year. Is there more upside left?

Multibagger Stock: Kalpataru Projects share price has risen by almost 100% over the past year. The shares of this engineering and construction firm have increased by nearly 200% in a three-year span giving multibagger returns to its shareholders. Recently, brokerage Motilal Oswal Financial Services reaffirmed its 'buy' recommendation for the stock, setting a target price of ₹1,500, suggesting a potential increase of approximately 19% from Tuesday's opening price of ₹1,261.60 on BSE.

Following the release of the company's second-quarter results, the brokerage firm mentioned that Kalpataru Projects' 2QFY25 revenue aligned with their expectations. The growth in execution was negatively affected by the slow collection of payments from water projects, though this situation is expected to improve after the state elections. The company anticipates an annual pipeline of approximately ₹600 billion for domestic transmission and distribution projects in the next few years.

“We expect Kalpataru Projects to be a key beneficiary of the robust T&D pipeline across domestic and international geographies, buoyant outlook for B&F projects, and improving international subsidiary performance,” the brokerage said.

Q2 Results

The company announced a consolidated net profit increase of approximately 40%, reaching ₹125.56 crore for the September quarter, supported by higher revenue. In the same period of the previous fiscal year 2023-24, it had reported a net profit of ₹89.89 crore, as detailed in an exchange filing.

Its total income grew to ₹4,946.98 crore, up from ₹4,530.49 crore in the corresponding period last year. The company’s expenses amounted to ₹4,758.96 crore, compared to ₹4,398.06 crore during the same quarter of the prior fiscal year.

"Kalpataru Projects' focus on margin improvement, working capital management, and non-core asset divestment will augur well going forward. We cut our estimates by 6%/8%/5% for FY25/FY26/FY27 to factor in weaker-thanexpected water segment performance; we roll forward our TP valuation to Dec’26E.

We maintain our SOTP-based TP of ₹1,500 based on 19x P/E for the core business on an improved prospect pipeline. Reiterate BUY," Motilal Oswal said.

Kalpataru Projects share price today

Kalpataru Projects share price today opened at an intraday high of ₹1,261.60 apiece on BSE, the stock touched an intraday low of ₹1,238.20. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, last week the stock prices made a strong bounce from key support, making an engulfing pattern on the weekly chart. The last two sessions have been sluggish; however, the undertone is likely to be positive, and dips are likely to get bought. ₹1,200 is the next support, whereas ₹1,330 is the next resistance.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.