IST

Hold KEC International, target of Rs 147: Reliance Money

Reliance Money has recommended a hold rating on KEC International with a target of Rs 147. The research firm expects a slow down in order inflow from international market, which might act as hindrance to the growth momentum of the company.

Source: Moneycontrol.com

Share . Email . Print . A+

Reliance Money has recommended a hold rating on KEC International with a target of Rs 147 in its December 16, 2008 research report. "KEC International Ltd has a healthy outstanding order book position of Rs 49.4 billion, of which 65% are international orders and the remaining 35% orders are domestic orders. During the H1FY09, the performance of the company was poor mainly due to high raw material cost and forex translation loss."

"The easing of commodity prices and depreciated rupee will help the company in improving its operating margin, as a major portion of its order book came from international markets in terms of fixed priced contract. We expect a slow down in order inflow from international market, which might act as hindrance to the growth momentum of the company. We recommend a HOLD on the stock with a target price of Rs 147," says Reliance Money's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

......

To read the full report click here