Prabhudas Lilladher is bullish on KEC International has recommended buy rating on the stock with a target price of Rs 400 in its research report dated August 04, 2018.
Prabhudas Lilladher's research report on KEC International
KEC International (KEC) reported net profit of Rs868mn (up 38% YoY) which was lower than our estimate due to weak execution in core T&D segment and lower margins. Non T&D saw strong growth trajectory. Order Book at the end of Q1 stood at Rs182bn (up 34% YoY), while Order Inflows were at Rs27.5bn, (down 2% YoY). KEC is L1 in orders worth Rs32bn.
The stock is trading at 13.9x FY20E earnings. We believe that a strong order book and improving margin profile will help KEC deliver 15% earnings CAGR over FY18‐20E. Maintain “BUY”.
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