HDFC Securities is bullish on KEC International has recommended Buy rating on the stock with a target price of Rs 330 in its research report dated August 03, 2017.
HDFC Securities' research report on KEC International
KECI’s revenue at Rs 18.6bn came in line with our estimates. With the execution of high-margin Railway orders, EDITDA margin expanded 100bps to 9.5%. Lower interest cost (-12.3% YoY, Rs 0.6bn) and higher other income (+96% YoY, Rs 98mn) resulted in APAT growth of 103.5% YoY to Rs 0.6bn. As at June-17 end, the orderbook stood robust at Rs 135bn (+7.1% QoQ; +30.1% YoY). Further, KECI is L1 in orders worth Rs 45bn.
we raise our P/E multiple to 17x (15x earlier), and thereby upgrade the stock to BUY with a TP of Rs 330/sh (17x Jun-19 EPS).
For all recommendations report, click here
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