Edelweiss is bullish on KEC International has recommended buy rating on the stock with a target price of Rs 455 in its research report dated June 14, 2018.
Edelweiss' research report on KEC International
At its Annual Investor Conference, KEC International (KEC) emphatically reiterated its bottom line-centric approach, specifically stating that the international (including SAE) and new businesses are likely to be the key growth drivers for the next two years. Management sounded upbeat about Railways, specifying growth therein is not one-off and that it would grow for another 3–4 years. KEC’s key concern is commodity price headwinds (45% order book is international and fixed-price). The company has come a long way in establishing its pedigree in T&D and is on track to replicate it in the Railways and Civil infra business. Diversification often comes with challenges (though KEC’s risk mechanism is fairly strong) and is a key monitorable for us.
Outlook
Having run up 50% in the last one year, the stock still offers a 25% return (TP of INR455 at 18x FY20E EPS) and is our preferred pick in the T&D space. Maintain ‘BUY’.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.