ICICI Direct recommended hold rating on Tata Communications with a target price of Rs 315 in its research report dated May 09, 2019.
ICICI Direct's research report on KEC International
KEC’s Q4FY19 revenue came in at Rs 3841.1 crore, up 4.8% YoY, below our estimate of Rs 4185.2 crore. The T&D business revenue declined marginally by 1.3% to Rs 2434 crore, the railways and civil & water business continued their growth momentum with revenues up 76.2% at Rs 633 crore and up 29.1% to Rs163 crore (amid low base). Cable business grew 25.5% to Rs 349 crore. EBITDA margins were at 10.4% (better than our estimate of 10.1%), which improved 30 bps YoY. During Q4FY19, KEC’s order inflow came in at Rs 4659 crore while the YTD inflow for FY19 was at Rs 14084 crore.
We value KEC at 11.5x P/E on FY21E EPS to arrive at a fair value of Rs 315/ share and maintain our rating to HOLD. Key risks: slow pick-up in execution of T&D backlog and rise in interest costs, which would impact profitability.
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