Sharekhan is bullish on KEC International has recommended buy rating on the stock with a target price of Rs 415 in its research report dated February 07, 2020.
Sharekhan's research report on KEC International
KEC clocked healthy revenue growth driven by strong execution in T&D (SAE) with stable OPM. Stable operational performance along with lower tax outgo resulted in strong net earnings growth. The management reiterated its guidance for 15% revenue growth with stable OPM for FY20 as it is expected to deliver strong growth on increased scalability in non-T&D business and stable execution in the T&D business. Order book remains healthy providing 1.8x TTM revenues and order inflows for FY20 expected to remain at similar levels as of FY2019.
We maintain a Buy rating on KEC International Limited (KEC) with a revised price target of Rs. 415 revising our valuation multiple given a healthy order backlog along with order inflow visibility in international T&D non T&D business and KEC’s ability to ramp-up execution.
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