ICICI Direct is bullish on KEC International has recommended buy rating on the stock with a target price of Rs 415 in its research report dated February 10, 2019.
ICICI Direct's research report on KEC International
KEC’s Q3FY20 revenues came in at Rs 3073.1 crore, up 16.1% YoY, in line with our estimate of Rs 3024.9 crore. Overall T&D business registered robust growth of 21.5% to Rs 2135 crore on the back of 121% YoY growth in SAE while railway business grew 9% to Rs 601 crore. Cable business de-grew 19.6% to Rs 249 crore while civil & solar business also registered weak performance. EBITDA margins came in at 10.4%, down 20 bps YoY. During Q3FY20, KEC’s order inflow came in at Rs 6054 crore while the YTD order book was at Rs 22011 crore.
Outlook
In light of the above factors, we value the stock at 14x FY21E EPS and maintain our BUY rating (target price of Rs 415) as the risk reward is favourable at this juncture.
For all recommendations report, click here
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