Kalpataru Power\u2019s (KPP) Q2FY18 headline numbers came in line with estimates.\u00a0 Key highlights: 1) 10 % revenue growth was majorly driven by 25% plus spurt in railways and pipeline businesses, while the core T&D business grew mere 4% impacted by GST; 2) margin remained healthy at 11%, implying margins of railways and pipeline businesses have now converged with T&D margin; 3) while Q2 order intake may look tepid (down 40% y-o-y), YTD orders at Rs 53 billion along with Rs 25 billion L1 pipeline is encouraging and we perceive strong probability of KPP beating our FY18 order intake assumption of `76 billion; 4) performance of JMC and Shubham Logistics (SSL) remained encouraging. We believe KPP is well equipped to tap emerging opportunities in the T&D segment, international business and railways. Maintain \u2018Buy\u2019. KPP\u2019s Q2FY18 revenue jumped 10 %. Management is confident (post GST stabilisation) of 15 % revenue surge in FY18 despite mere 5% growth in H1. We believe this is achievable on account of: 1) execution ramp up riding Rs 96 billion order book; 2) settling of GST-related issues; and 3) sustenance of robust momentum in railways & pipeline businesses. While gross debt has remained stable at Rs 7.5 billion, net debt has been inching up as KPP invests in transmission BOOT projects and other subsidiaries. This is expected to continue in the near to medium term as almost Rs 3.0-3.5 billion equity still needs to be infused overall. JMC\u2019s revenue grew 25% riding strong execution post robust order booking in FY17.\u00a0Margin remained stable at 10 %. SSL seems to be making a strong come back with 40% EBITDA margin in Q2FY18 and losses have reduced considerably to Rs 70 million versus Rs 220 million in Q2FY17. We perceive potential value unlocking from sale of real estate projects, road assets and SSL, which could spur further rerating. We maintain \u2018Buy\/SO\u2019 with SOTP-based target price of Rs 480.