ICICI Direct is bullish on KEC International has recommended buy rating on the stock with a target price of Rs 335 in its research report dated November 11, 2019.
ICICI Direct's research report on KEC International
KEC’s Q2FY20 revenues came in at Rs 2808.8 crore, up 16.6% YoY, above our estimate of Rs 2700 crore. Overall T&D business registered robust growth of 30.3% to Rs 1978 crore, the railways business continued its growth momentum with revenues up 34.7% to Rs 568 crore. Cable business de-grew 5.9% to Rs 249 crore. On the other hand civil & solar business registered weaker performance. EBITDA margins came in at 10.5% (vs. our estimate of 10.4%), which remained stable YoY. During Q2FY20, KEC’s order inflow came in at Rs 2651 crore while the YTD order book was at Rs 18085 crore.
We continue to value the stock at 11.5x FY21E EPS and maintain our BUY rating (target price of Rs 335) as risk reward is favourable at this juncture.
For all recommendations report, click here
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