AgenciesRelated
Anand Rathi has given buy rating KEC International with a target price of Rs 398. The share price moved up by 1.03 per cent from its previous close of Rs 305.95. The stock’s last traded price is Rs 309.10.
KEC International Ltd., incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 7802.63 Crore) operating in Power sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 2206.76 Crore, down 39.89 % from last quarter Sales of Rs 3671.00 Crore and down 8.53 % from last year same quarter Sales of Rs 2412.45 Crore. The Company reported net profit after tax of Rs 70.80 Crore in latest quarter.
Investment Rationale
Strong order pipeline, lower debt, softening interest costs and a stable working-capital cycle give the required assurance of strong future execution and earnings. The brokerage rolls over the estimates to FY23 and expect 12%/17% revenue/PAT growth y/y. It values KEC at 13x FY23e EPS, with a higher target of Rs 398 (earlier Rs364). Risks: Slowdown in orders and pace of execution.
Promoter/FII Holdings
Promoters held 51.7 per cent stake in the company as of June 30, 2020, while FIIs held 13.7 per cent, DIIs 22.8 per cent and public and others 11.8 per cent.
KEC International Ltd., incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 7802.63 Crore) operating in Power sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 2206.76 Crore, down 39.89 % from last quarter Sales of Rs 3671.00 Crore and down 8.53 % from last year same quarter Sales of Rs 2412.45 Crore. The Company reported net profit after tax of Rs 70.80 Crore in latest quarter.
Investment Rationale
Strong order pipeline, lower debt, softening interest costs and a stable working-capital cycle give the required assurance of strong future execution and earnings. The brokerage rolls over the estimates to FY23 and expect 12%/17% revenue/PAT growth y/y. It values KEC at 13x FY23e EPS, with a higher target of Rs 398 (earlier Rs364). Risks: Slowdown in orders and pace of execution.
Promoter/FII Holdings
Promoters held 51.7 per cent stake in the company as of June 30, 2020, while FIIs held 13.7 per cent, DIIs 22.8 per cent and public and others 11.8 per cent.