The 38 reports from 15 analysts offering long term price targets
for KEC International Ltd. have an average target of 381.93. The consensus estimate
represents an upside of 8.13%
from the last price of 353.20.
Order inflow environment improving: The momentum of order wins has continued in this quarter, with KECI winning ~INR25b worth of orders, including the recently won order worth ~INR10b. Notably, order inflows have commenced in the Railways segment and are likely to pick up hereafter. 9MFY21 order wins (to date) amount to ~INR68b. Although this is below INR98b worth of orders won in 9MFY20, we attribute the wins to large firsttime orders in the Civil segment in the base year as the company had forayed into metros (Kochi and Delhi metro orders). The order inflow momentum is picking up as we enter a busy season in terms of construction...
We retain a Buy on KEC International Limited (KEC) with an unchanged PT of Rs. 435, considering its improving operations and reasonable valuations. Pick-up in execution would ensure better performance in FY2021. Strong YTD order inflows and a Rs. 30,000-crore bidding pipeline offer visibility for remainder of FY21. Expect 1.4x and 2.5x y-o-y rise in revenue for rail and civil in FY2021. Rail division continues faster execution, while order tendering is gaining traction for railways and tendering in T&D; is largely dominated by international market. YTD collections better than last year. Interest outgo contained with lower rate debt....
KEC's 2QFY21 revenues came in at 32.6bn, up 16% YoY and 47.6% QoQ. The growth was mainly driven by faster ramp-up in execution, increased labour strength and adoption of mechanization, automation and digitalization to improve productivity. EBIDTA margins declined to 9% (vs. 10.5% in...
Oil and Gas infrastructure etc. We have revised our estimates upwards and expect the company to post Revenues/EBIDTA/PAT at CAGR of 11%/10%/21% respectively over FY20-22E. We retain BUY with a revised target price of Rs 415 valuing the company at 13x FY22E.
Topline came in at | 3257.7 crore, up 16% YoY (above our estimate of | 2875.8 crore). During Q2FY21, the overall T&D; business (including SAE Tower) revenue remained flat YoY at | 1977 crore. While non-T&D; business (railways, civil, cables, other) registered robust growth of 52% to | 1349 crore, YoY led by better execution. The railways business revenue came in at | 821 crore, up 45% while civil business segment revenue grew 3x to | 212 crore. The company has bagged orders to the tune of | 4366 crore. KEC has submitted tenders to the tune of | 30000 crore with more worth...
KEC International (KEC) reported consolidated revenue of Rs32.6bn, up 16% YoY and 22%/15% above our/consensus estimates. Growth was mainly driven by faster ramp-up in execution, increased labour strength and adoption of mechanization, automation and digitalization to improve productivity. Railways sales were up 45% YoY at Rs8.2bn while Civil sales grew by 307% YoY to Rs2.1bn on a low base. T&D;, SAE and Cables sales were flat YoY. EBITDA was flat YoY at Rs2.9bn, leading to EBITDA margin of 9%, down 150bps YoY, below our/consensus of 10.4%/9.7%. Margins were lower due to COVID-19 related safety costs, unfavourable revenue mix (higher share of Railways & Civil and lower share of T&D;) and lower profitability in SAE Towers...
KEC has reported Q2 revenue, EBIDTA and PAT better than estimates (Refer Exhibit 1), with supply chain and labor levels back to normal. Order inflow for YTDFY21 was Rs43.7bn, with 41% domestic orders. Its...
stable working-capital cycle give us the required assurance of strong future execution and earnings. We roll over our estimates to FY23 and expect 12%/17% revenue/PAT growth y/y. We value KEC at 13x FY23e EPS, with...
We retain Buy on KEC International Limited (KEC) with a revised PT of Rs. 435, taking into account improving operations and reasonable valuations. Execution run-rate and labour availability pick-up to ensure higher y-o-y revenue for Q2FY2021 and FY2021. Strong order inflows YTD along with Rs. 30,000 crore-35,000 crore bidding pipeline visibility over the next three months. Expect 1.2x and 2.5x y-o-y rise in revenue for rail and civil in FY2021. Rail division continues faster execution, while order tendering is likely to gain traction. YTD collections better than last year. Interest outgo contained with lower rate debt....
KEC International reported a very good performance for Q1FY21 despite being the lockdown quarter; revenue for Apr'20 impacted significantly due to COVID-19 disruption, however revenues for May'20 and June'20 were better than corresponding months of last year
Strong execution and healthy margins in a lockdown quarter KEC Internationals (KEC) execution in 1QFY21 was better than expected as revenue declined only 9% YoY to Rs22.1bn in a lockdown quarter, 17%/26% above our/consensus estimates. T&D;/SAE towers sales fell 9% YoY each to Rs11.8bn/Rs2.8bn, while Railways was flat YoY at Rs5.2bn. Cables fell 40% YoY to Rs1.6bn while Civil grew 59% YoY to Rs1bn on a low base. EBITDA fell 23% YoY to Rs1.9bn, leading to EBITDA margin of 8.8%, down 160bps YoY, but above our/consensus estimates of 6.5%/5.2%. Aided by lower tax rate at 26.6% (v/s 35.7% YoY), the decline in PAT was restricted to 20% YoY to Rs708mn, much above our/consensus estimates...
Better than expected execution; valuations undemanding; Maintain Buy KEC has reported better revenue, EBIDTA and PAT better than estimates (Refer Exhibit 1). This was mainly due to improved operational capacity at 80% as compared to 50% earlier and a...
Strong backlog, execution ramp-up to ensure sustained growth Q1FY21 YTD order inflow came in at | 1931 crore, up 73%. We believe an L1 of | 4800 crore, mostly in international T&D;, combined with strong order pipeline in railways (conventional railway, new track lines, electrification), Green Energy Corridor (GEC), and new opportunities in Saarc, MENA, Africa, Middle East Region should help KEC have reasonable order inflow in FY21E. The company expects good traction in order inflows from international T&D;, railways, civil & GEC. It expects margins to sustain owing to commodity price...
KEC International Limited (KEC) is a global infrastructure Engineering Procurement and Construction major. It has presence in the verticals of Power T&D; (Transmission & Distribution), Cables, Railways and Water & Renewable. Q1FY21 revenue de-grew by 8.5% due to impact on execution in April 20. However, during May & June execution witnessed a healthy improvement led by Railway and Civil segment. EBITDA margin declined by 159bps YoY to 8.83% despite...
We roll forward 12x P/E based valuation to Jun-22E and maintain BUY with an increased target price of Rs 322/sh. The key risks to our call: (1) adverse currency/commodity movement, (2) further delay in capex recovery, (3) slowdown in government T&D spend, and (4) labour shortage. The key takeaways from KECs FY20 AR are as follows: (1) a geographically well-diversified order book and robust pipeline; International T&D; (SAARC/MENA, ex-SAE) and Civil & Railways would continue to drive growth in FY21E; (2) moderate profitability, dipped in FY20; (3) incremental borrowing cost (current interest rate <7%) has come down (FY20 finance cost at 2.8%; -20 bps YoY); ~55% debt is in forex; (4) sustained increase in WC intensity has led to lower CFO/EBITDA over past two years, but NWC is stable. Our channel checks for capital goods suggest that well-diversified companies are witnessing accelerated recovery in execution as international operations remain mostly unaffected while the labour situation is improving locally. We have increased FY21/22E revenue/PAT by 8/10.3% and 22.9/17.2% respectively.
