Neutral KEC International; target of Rs 940: Motilal Oswal

Motilal Oswal's research report on KEC International

KECI in our recent meeting highlighted a continued strong addressable market for T&D and improving opportunities in the civil segment for residential buildings, petrochemicals, hospitals, etc. while, industrials has been witnessing slow momentum. The company is continuously focusing on improving return metrics and targeting a reduction in NWC cycle on improved collections. We expect KECI to continue to benefit from the prospect pipeline in T&D, and thus, maintain our estimates.

Outlook

We retain our Neutral rating on the stock with a TP of INR940, based on 21x two-year forward earnings.