Kotak Securities Bullish on CAMS, KPIL: Targets ₹860, ₹1710

Shrikant Chouhan, head of equity research at Kotak Securities, has issued bullish recommendations for CAMS Ltd and Kalpataru Projects International (KPIL), anticipating significant near-term growth for both stocks.

CAMS Ltd: Strong Q1FY27 Performance Drives ‘Add’ Rating

CAMS, a leading technology-driven financial infrastructure provider primarily serving the mutual fund industry, received an “Add” rating from Kotak Securities. The firm highlighted CAMS’s robust Q1FY27 results and its stable market position.

• Current Market Price (CMP): ₹784
• Fair Value Target: ₹860
• Q1FY27 Core Earnings Growth: 19% year-on-year
• Mutual Fund-based Revenue Increase: 9%
• Non-Mutual Fund Revenue Growth: 28%
• CAMS Pay Revenue Growth: 70% year-on-year
• Mutual Fund RTA Yields: Stable at 2.09 bps

The company manages approximately 68% of India’s mutual fund assets under management (AUM) and has diversified into various services, including insurance repository, alternative investment funds (AIFs), wealth management technology, and KYC compliance. Management expects to maintain current RTA yields.

Kalpataru Projects International (KPIL): Record Order Book Fuels ‘Buy’ Call

For Kalpataru Projects International, an Indian EPC company, Kotak Securities assigned a “Buy” rating, citing its record-breaking order book. KPIL’s diversified presence spans Power Transmission & Distribution (T&D), Buildings & Factories (B&F), Water Supply & Irrigation, and Oil & Gas sectors.

• Current Market Price (CMP): ₹1,400
• Fair Value Target: ₹1,710
• Highest-ever Order Book (Q1FY27): ₹66,600 crore
• Revenue Visibility: 2.5 years
• YTD FY27 Order Inflows: ₹7,670 crore
• L1 Positions: ₹7,500 crore
• Total Secured/L1 Visibility: Around ₹15,000 crore
• Q1FY27 Consolidated Revenue Growth: 9% year-on-year
• Q1FY27 Consolidated PBT Increase: 45% year-on-year to approximately ₹420 crore

KPIL’s management targets at least 15% annualized revenue growth and ₹30,000 crore in order inflows for FY27. The company aims for a 75bps+ improvement in PBT margins and working capital below 100 days.

The firm is strategically positioned to leverage India’s T&D market, which presents an annual opportunity of ₹1-1.25 trillion over the next five years. Kotak Securities projects a 17% revenue CAGR for KPIL between FY26-29E, primarily driven by its T&D and B&F segments, underpinned by a robust balance sheet with net debt/equity at 0.1x and RoCE at 21-22%.