Prabhudas Lilladher is bullish on KEC International has recommended buy rating on the stock with a target price of Rs 295 in its research report dated May 30, 2020.
Prabhudas Lilladher's research report on KEC International
KEC International (KECI) reported strong quarterly performance despite Covid-19 pandemic. Sturdy execution in T&D, railways and civil segments along with pickup in SAE business execution led to a strong performance. Order inflows for 4QFY20 stood at Rs27.7bn up 8.3% YoY majorly contributed towards T&D (39%), Railways (28%) and Civil business (24%). KECI’s OB stands at ~Rs205bn and is L1 order worth ~Rs24bn thus providing a strong revenue visibility. Management expects healthy orders primarily from Africa region, SAARC countries and MENA regions on the international front. On the domestic front, decent orders are expected from Railways, T&D and Solar segment.
Outlook
The stock is currently trading at 9.9x/8.0x FY21/FY22E. We maintain “BUY” with TP of Rs295.
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