KEC International Ltd. share price target

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

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...

We recommend a BUY on KEC International with a Target Price of Rs 300 an upside of 9.5% from CMP of Rs. 274 and Stop Loss Rs 260.

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...

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...

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. Q4FY20 revenue witnessed a marginal de-growth of 4% despite...

Steady quarter amid challenging times, healthy order book & execution capabilities to support top-line growth, pressure on margins likely In 4QFY20, KEC's consolidated revenue declined by 4.4% YoY to 36.7bn; COVID-19 impact towards end of Mar-20 resulted in 5-6bn revenue miss. The execution across Railways (+36% YoY) and SAE (+39% YoY) remain strong, though transmission (-17% YoY) and cables business (-38% YoY) suffered impact of Covid led disruption. The SAE business remained operational throughout the quarter while railways demonstrated quick ramp-up post initial hiccups. During 4QFY20, overall T&D; business revenue declined by 11% YoY to 24.6 bn, while the revenues...