KEC International Ltd. share price target

We value KEC International at 14x FY23E EPS to arrive at a target price of Rs465/share, implying a downside of 3% from CMP. Given a long-term positive outlook, we maintain a HOLD rating on the stock..

We value KEC International at 13x FY23E EPS of Rs 33 to arrive at a target price of Rs 430/share, implying an upside of 3% from CMP and change our rating from a BUY to HOLD.

We value KEC International at 13x FY23E EPS of Rs 33 to arrive at a target price of Rs 430/share, implying an upside of 3% from CMP and change our rating from a BUY to HOLD.

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. KEC registered a revenue growth of 15% YoY in Q1FY22 led by...

Execution delay in Brazil owing to pandemic and rise in commodity price resulted into EBITDAM contraction of 254bps YoY to 6.3%. KEC International (KECI) reported Q1FY22 performance above expectation, led by strong execution in its Non T&D; business with revenue growth of 15% YoY led by strong growth of 191%/109%/14% YoY in Civil/Cables/Railways, while T&D; segment declined 4% YoY mainly due to execution delay in Brazil caused by Covid second wave. Rise in commodity price and cost overrun in...

Commodity prices dent margin; strong order inflow outlook Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...

...

Moving from strength to strength; outlook improving Aims to expand margin by providing higher engineering offerings Order inflow environment improving, with a robust pipeline The momentum in order wins continued into 1QFY22, with KECI winning ~INR30b worth orders in FY22 YTD (v/s INR7b YoY). This clearly indicates that the impact of the second COVID wave has been minimal on ordering intensity, albeit for Railways, which has witnessed some delays. Tenders under evaluation and in the pipeline stood over INR650b, thus indicating healthy potential order...

We expect Revenues/EBIDTA/APAT to grow at a CAGR of 14%/19%/26% respectively over FY21-23E and value KEC International at 13x(12.5x earlier) FY23E EPS of Rs 34 to arrive at a target price of Rs 445/share, implying an upside of 11% from CMP.