Sell KEC International, target price Rs 271: Emkay Global

Emkay Global has given a sell rating to KEC International with a target price of Rs 271. The share price moved up by 0.23 per cent from its previous close of Rs 346.70. The stock’s last traded price is Rs 347.50.

KEC International Ltd., incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 8946.68 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
The brokerage expects normalization for KEC business operations as it was one of the few companies that was less affected by the lockdown.

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.