KEC International Ltd. share price target

Transmission spend driven by SEBs and TBCB projects Maintains FY19 margin guidance of 10% We met KEC International's (KECI) management. Key takeaways:...

While order inflows remained flat for Q4FY18, it increased by 22% during FY18. Order backlog stands at Rs173bn (+37% yoy). Management guidance for FY19 - (i) Revenue growth of ~15% and (ii) EBIDTAM of ~10%. Upgrade FY19E/FY20E EPS by 7%/6% respectively on higher revenue and margin...

ICICI Securities Ltd | Retail Equity Research During Q4FY18, KEC reported revenues of | 3664.2 crore (above our estimate of | 3152.8 crore) registering strong revenue growth of 28.6% YoY. Revenue growth was primarily driven by the T&D; business, which grew 20.6% to | 2775 crore and outperformance in the railways business, which grew 74.6% to | 359 crore EBITDA margins were at 10.1% in the quarter (below our estimate: 10.7%) due to higher-than-expected increase in raw material cost...

Consolidated revenue grew 28.6% YoY toINR36.6b in 4QFY18, ahead of our expectation of INR31.6b. All business segments, excluding Cables, registered strong growth. Cables business was impacted by shifting of operations from the Silvassa facility to the Vadodara facility. T&D business (including SAE) grew 20.6% YoY, while Railways grew75% YoY and Civil grew 346% YoY. T&D contributed 74% of revenue,followed by Railways (10%), Cables (7%), and Solar, Civil and Water (8%). Management guided for revenue growth of 15% in FY19, which will be supported by a pickup in execution of T&D orders in hand and strong growth in non-T&D segments

KEC International (KEC) has delivered a superb performance in 4QFY18. Its net profit surged by 35% YoY to Rs1.96bn (higher-than-our estimate) led by strong execution and lower depreciation. However, its EBITDA margin declined by 30bps YoY to 10.1% owing to higher input cost (76.2% vs. 68.4% in 4QFY17), which was partially offset by lower other expenses. Looking ahead, we expect KEC's earnings to clock 25.9% CAGR over FY17-20E on the back of strong order book, improving margin profile and healthy outlook in T&D; and other emerging segments. Thus, maintaining our positive stance, we reiterate our BUY recommendation on the stock with a downwardly revised Target Price of Rs434....

KEC International Limited (KEC) is a global infrastructure Engineering Procurement and Construction (EPC) major. It has presence in the verticals of Power T&D;, Cables, Railways and Water & Renewable. Q3FY18 revenue grew by 26% YoY (above estimate) led by ramp up in execution in T&D; and railway segment. Q3FY18/9MFY18 Adj. PAT grew by 79%/67% YoY respectively led by strong operational performance and lower depreciation & tax outgo....

On our valuation front , at CMP of Rs.359, the company is trading at a P/E multiple of 25.6x which is at discount as compared to the industry P/E of multiple 27.5x and EV/EBIDTA multiple of 13.3x which is at premium as compared to industry EV/EBIDTA of multiple of 11.9x .After considering all these factors and...

Improved Project Execution Lifts Earnings; Maintain BUY KEC International (KEC) has delivered a healthy performance in 3QFY18 with its revenue rising by 22.5% YoY to Rs24.0bn led by diminishing impact of GST. Consolidated net profit surged by 78.5% YoY to Rs1.1bn in 3QFY18 on the back of improved execution of T&D; projects and higher operating margins. Looking ahead, we expect KEC's earnings to clock 26.9% CAGR over FY1720E on the back of strong order book, improving margin profile and healthy outlook in T&D; and other emerging segments. Thus, maintaining our positive stance on KEC and rolling over our estimates to FY20E, we maintain our BUY recommendation on the stock with a revised Target Price of Rs445 (from Rs372 earlier)....

KEC International Ltd. (KECI) reported consolidated Q3FY18 sales at INR 2405 cr up 22% YoY primarily led by improvement in execution in T&D; and railway segment. Strong outlook from international T&D.;.

ICICI Securities Ltd | Retail Equity Research KEC reported strong set of Q3FY18 results. The beat was in terms of order inflow & backlog, execution trend, EBITDA margins and finance costs. All these factors led to strong profitability for the quarter The topline increased 25.8% YoY to | 2404.9 crore, which was above our estimate of | 2375.5 crore. The key segment that reported robust execution was the T&D; segment wherein the revenues grew by 23.4% YoY. On a low base the railways segment witnessed 98.5%...