Kalpataru Power: Promoter Pledge Overhang Clouds Fundamental Growth, Valuation Uptick, Says ICICI Securities
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ICICI Securities Report
Kalpataru Power and Transmission Ltd. has witnessed a strong rebound in execution and order intake post Covid-19 pandemic-related challenges; however, the stock has been under pressure due to promoter pledge and issues in the unlisted real estate group entity.
In the previous concall in November 2020, the promoter had shared the timeline for reduction of pledge shares and the company had reversed a corporate decision in terms of buying of property from related party.
The sale of Alipurduar transmission asset is complete, while the others are in progress.
Cashflow from the sale of these assets will aid in debt reduction and we do not foresee any major equity infusion towards subsidiaries.
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