Prabhudas Lilladher has given Accumulate recommendation for KEC International with a target price of Rs. 420 in its research report issued on Jun 17, 2021
Prabhudas Lilladher’s research report on KEC International
We attended analyst meet of KEC International hosted by Mr. Vimal Kejriwal – MD & CEO and Mr. Rajeev Aggarwal (CFO) to gain insights and opportunity size on various business verticals. With government’s thrust on infrastructure spending through programs such as NIP’s, tendering pipeline remains strong with Rs650bn plus bid pipeline across segments. In international markets, management is seeing good traction in orders from MENA, Africa, SAARC and South East Asia regions. For domestic segment, although ordering pipeline remains healthy, yet some delay in order finalization has been witnessed. Key segments such as Railways (Metros), Civil, urban infra, T&D space, water and Solar would be on focus going ahead.
The stock is currently trading at 14.9x/11.9x FY22/23E. We maintain ‘ACCUMULATE’ rating with TP of Rs420 (same as earlier).