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Here’s why Kalpataru Power stock is up 7% today

Kalpataru Power stock

Reason behind Kalpataru Power stock rise up 7% today

Kalpataru Power stock – After receiving a Letter of Intent (LoI) for a Power Transmission and Distribution project in the international market, Kalpataru Power Transmission’s stock soared 7% to an intraday high of Rs 403.70 on the BSE. The stock began trading at Rs 403.70, up 7% from its previous close of Rs 377.50. The shares are higher than the 5 day and 50 day moving averages but lower than the 20 day, 100 day, and 200 day moving averages, with a market capitalisation of more than Rs 5800 crore. 
The letter of intent is for a significant project that entails the design, engineering, supply, and construction of a 700-kilometer HVDC power transmission line. The project is anticipated to be worth Rs.3,276 crores (USD 431 Million). Certain conditions must be met in order for the LoI to be granted. Phase 1 of the project will begin immediately with design and engineering efforts, according to the business. 
Mr. Manish Mohnot, Managing Director & CEO of KPTL, commented on the development, saying, “We feel pleased to announce the receipt of the above mentioned LoI.” This historic achievement can be attributed to “intense efforts that we have been putting in over the last several years on large-scale projects for long-term value creation, developing strong client relationships, and penetrating deeper into focused markets on the back of our strong technical and execution capabilities,” according to the company.

Kalpataru Power stock

This is also a really satisfying experience because we’ve been working with the same clients for several years, which is a testament to our high-quality solutions and knowledge in the power T&D industry. We hope to have many more opportunities like this in the future.” The stock is technically in a Mildly Bearish range, according to MarketsMojo, and 50% of promoter Shares are pledged. High promoter pledged shares provide extra downward pressure on stock prices in weakening markets. Over the last quarter, the percentage of pledged holdings has climbed by 4.7%. KPTL is one of the world’s major EPC firms, specializing in electricity transmission and distribution, oil and gas pipelines, trains, and civil infrastructure. 

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