KEC International Ltd. share price target

We recommend a BUY on KEC International with a Target Price of Rs 360 an upside of 8% from CMP of Rs. 334 (pre-open price) and Stop Loss Rs 324.

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 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 is a global leader in the power transmission and distribution space, offering integrated solutions across the T&D; value chain.

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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