Prabhudas Lilladher's research report on KEC International
KEC International’s (KEC) FY22 annual report analysis suggests that Non Transmission and Distribution (T&D) segments likely to be key growth driver going forward, specially driven by Civil and Railway segments, while T&D segment will be driven by international orders. Within T&D segment, KEC strengthened its position in India, SAARC, UAE, Saudi Arabia etc. with healthy order inflows. Railways segment has deepened its presence in technology-enabled areas of Urban Infrastructure with new orders in metro electrification, overhead electrification, third rail, power supply systems and track laying. Civil segment forayed into the public spaces segment with maiden orders to construct an airport and a high court complex. Cables continued its focus on new product development and has commercialized new cables for railways and large private utility. It has accelerated Oil & Gas (O&G) business by acquisition of Spur Infrastructure Pvt. Ltd. We believe government spending on infrastructure will continue, thereby translating into healthy ordering activity across sectors such as transmission & distribution, railways, metros, water infrastructure etc.
KEC is well placed to capitalize on this opportunity given 1) its presence across various business verticals, 2) strong OB position, 3) healthy execution track record and 4) strong management capability. The stock is currently trading at PE of 18.5x/12x FY23/24E. We maintain ‘Accumulate’ rating on stock with TP of Rs 451 (same as earlier) valuing it at PE of 13x FY24E.
At 15:32 hrs KEC International was quoting at Rs 400.70, down Rs 14.35, or 3.46 percent.
It has touched an intraday high of Rs 415.05 and an intraday low of Rs 395.00.
It was trading with volumes of 19,266 shares, compared to its thirty day average of shares, a decrease of percent.
In the previous trading session, the share closed down 1.40 percent or Rs 5.90 at Rs 415.05.
The share touched its 52-week high Rs 550.00 and 52-week low Rs 345.15 on 26 October, 2021 and 12 May, 2022, respectively.
Currently, it is trading 27.15 percent below its 52-week high and 16.09 percent above its 52-week low.
Market capitalisation stands at Rs 10,301.53 crore.
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