KEC International: Short-term speed breakers; stock trades at reasonable valuations
The KEC stock is still cheap at 12 times its fiscal 2023 estimated earnings, particularly in light of growth, strong balance sheet and orders in hand
May 13, 2021 / 10:10 AM 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
KEC International’s efforts to diversify and focus on the non-transmission and distribution (Non-T&D) business is delivering good results, even in difficult times.
In fiscal 2021, the T&D business reported a 7 per cent year on year (YoY) drop in revenue, but considering a strong 43 per cent increase in the non-T&D business, the company was able to post a good 10 per cent YoY growth in revenues for fiscal 2021.
Interestingly, the increasing size and scale of these businesses is now...