KEC International: Riding the strong momentum in capex cycle

Order book strong, margins improving, execution better, and working capital under control

Jitendra Kumar Gupta
May 05, 2023 / 01:34 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Key highlights  Improving execution is a good sign of demand supporting growth  Recovery in T&D business to lead to improved profitability and earnings  Strong order inflows and order book to support visibility  Control over working capital and debt to yield good results  Stock trading 15 times its fiscal 2025 estimated earnings KEC International has achieved its highest-ever revenue and order intake in fiscal 2023, with an improvement in working capital. The EBITDA (earnings before interest, tax, depreciation, and amortisation) margins for the last two quarters...