Emkay Global Financial has given Buy recommendation for KEC International with a target price of Rs. 530 in its research report issued on Jan 10, 2022

Emkay Global Financial’s report on KEC International

KEC has recorded order inflows of ~Rs130bn YTD, with L1 orders of over Rs60bn. This is the highest-ever inflow till mid-Jan in any fiscal – 9MFY19 saw inflows of Rs115bn with L1 orders of ~Rs40bn. Till H1FY22, Railways/T&D at 33%/28% were the major contributors to the overall inflows. We have increased our annual inflow forecast to ~Rs180bn. Further, more recently, the Union Cabinet has approved the second phase of the Green Energy Corridor of the Intra-State Transmission System at a cost of Rs120bn. Domestic T&D is expected to improve in terms of inflows in FY23. We cut our FY22E Sales/EBITDA/PAT by 2%/5%/7% to factor in some execution delays due to the construction ban in Delhi and floods in Chennai during Q3FY22. KEC has projects in both the cities. Our FY23E/FY24E EPS now stands at Rs28.8/Rs37.7, higher/lower by 5%/2%.

Outlook

We maintain Buy rating on the stock, with a TP of Rs530 (Dec’22E), based on 15x one-year forward PE, which is the average 10-year multiple.

More Info on Trent

At 16:00 hrs KEC International was quoting at Rs 495.00, up Rs 12.10, or 2.51 percent.

It has touched an intraday high of Rs 499.00 and an intraday low of Rs 475.85.

It was trading with volumes of 14,936 shares, compared to its thirty day average of 20,218 shares, a decrease of -26.12 percent.

In the previous trading session, the share closed up 4.66 percent or Rs 21.50 at Rs 482.90.

The share touched its 52-week high Rs 550.00 and 52-week low Rs 338.00 on 26 October, 2021 and 18 January, 2021, respectively.

Currently, it is trading 10 percent below its 52-week high and 46.45 percent above its 52-week low.

Market capitalisation stands at Rs 12,725.87 crore.

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