Kalpataru Projects International has gained attention following the announcement of securing new orders and notifications of awards amounting to ₹1,241 crore. However, despite this positive news, shares of the company declined by 2.73% on Monday, closing at ₹1367.55. The market capitalisation of Kalpataru fell to ₹22,215 crore, with 6708 lakh shares traded on the BSE, leading to a turnover of ₹91.59 lakh.
Technical performance and volatility
Kalpataru Projects International has experienced considerable volatility in the past year, reflected in its beta value of 1.2. Although the share price has recently declined, the stock remains above its 5-day, 10-day, 50-day, 100-day, and 200-day moving averages but is currently trading below its 20-day moving average. The relative strength index (RSI) of Kalpataru stands at 53.3, indicating that the stock is currently not overbought or oversold.
New orders enhance the order book
Kalpataru Projects announced to the stock exchange that the newly secured orders are in the transmission and distribution (T&D) sector, both domestically and internationally, along with residential and commercial building projects within India. This significant addition strengthens the company's existing order book, with year-to-date (YTD) order inflows now exceeding ₹11,000 crore.
Manish Mohnot-Managing Director and CEO of Kalpataru Projects, conveyed his optimism about the company’s robust momentum in winning new projects. He highlighted that 80-85% of the new orders, including L1, stem from the transmission and distribution, and buildings and factories businesses. Mohnot further added that this robust performance reinforces their confidence in maintaining sustainable growth and profitability.
Kalpataru's diversified operations
Kalpataru Projects International is one of India's largest engineering, procurement, and construction (EPC) companies. It functions across various sectors, including power transmission and distribution, construction of buildings and factories, water supply and irrigation, railways, oil and gas pipelines, urban mobility projects like flyovers and metro rail, as well as highways and airports. This diversification positions Kalpataru to consistently invest in stocks across different industries, further strengthening its market standing.
Key takeaways
This announcement highlights Kalpataru's strong market position, offering investors an opportunity to invest in stocks with diversified business portfolios.
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