Buy KEC International; target of Rs 890: Motilal Oswal

Motilal Oswal is bullish on KEC International has recommended buy rating on the stock with a target price of Rs 890 in its research report dated January 31, 2026.

Broker Research

February 02, 2026 / 18:19 IST

Buy

Motilal Oswal's research report on KEC International

KEC posted in-line results in 3QFY26. The performance could have been better, but it was impacted by labor constraints and lower margins in select segments. Order inflow for 9MFY26 remained strong at INR193b, resulting in OB of INR367b. Going ahead, we expect KEC to continue to benefit from strong addressable market across segments. We expect T&D and cable to continue to lead the growth vs. other segments. Margin performance, however, could be impacted by delays in claim settlements. We thus reduce our margin estimates and cut our estimates by 15%/8%/8% for FY26/27/28. The stock is currently trading at attractive valuations of 18x/14.3x P/E on FY27/28 estimates. We maintain BUY with a revised TP of INR890, based on 20x P/E Dec’27E earnings.

Outlook

KEC is currently trading at 25.2x/18x/14.3x on FY26E/27E/28E EPS. Our estimates bake in a revenue CAGR of ~17% and an EBITDA margin of 7.2% for FY26E and 7.6% for FY27E/28E. We maintain BUY with a revised TP of INR890 (from INR920 earlier) based on 20x Dec’27E EPS.

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