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Sharekhan's research report on KEC International
Company currently has an order book of ~Rs 38,000 crore (including L1 position), which gives revenue visibility for the next 6-8 quarters. We expect faster execution of order book will drive revenue growth as major order intake has been from the T&D segment, which has a shorter execution time. Management expects the T&D segment to report double-digit margins from H2FY25 onwards, mainly due to closure of legacy orders in H1FY25 and execution of new better margin projects. Positive development in the cables (launched two products), Oil & Gas and Civil (breakthrough orders in the hospitals and FMCG sectors) segments will not only provide revenue diversification but can also act as avenue for future growth.
Outlook
We retain a Buy on KEC with a revised PT of Rs. 850, backed by improving margin trajectory, robust order book and strong earnings outlook.
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Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!