Accumulate KEC International; target of Rs 911: Prabhudas Lilladher

Prabhudas Lilladher's research report on KEC International

We attended the annual investor call of KEC International (KECI IN), where the management shared key updates on the company’s FY25 financial performance and outlined growth opportunities across both domestic and international markets. The domestic Transmission & Distribution (T&D) segment continues to demonstrate strong momentum, backed by a healthy order book and increasing traction in international regions such as the Middle East, CIS countries, and the Americas. In the Civil segment, the company is witnessing good traction from Buildings & Factories, Data Centers, and the Semiconductor space, particularly from global clients. Notably, KEC has secured significant projects in both the semiconductor and petrochemical sectors. On the cables front, capacity expansion and the commissioning of a new aluminum conductor plant are expected to boost KEC’s market share from the current 4–5%. In the Railways and Oil & Gas businesses, management remains prudent, prioritizing selective order booking with a focus on profitability.

Outlook

The company’s current order book, including L1 positions, stands at ~ Rs400bn, with a strong bid pipeline of around Rs1.8trn. We maintain ‘Accumulate’ rating with a TP of Rs911 (same as earlier) valuing the stock at a PE of 18x Mar’27E (same as earlier).

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