Buy Kec Intl., target price Rs 900: IIFL Securities

IIFL Securities has issued a buy recommendation for Kec International Limited (Kec Intl.) with a target price of Rs 900 on June 13th. At the current market price of Rs 860.15, this represents a potential upside of approximately 4.6%. The recommendation is based on the company's strong fundamentals, including its leadership position in the electricals industry, diversified product portfolio, and robust financial performance. Investors may consider this recommendation as a potential opportunity to capitalize on the company's growth prospects.

About Kec Intl.:

Kec International Limited (KEC) is an Indian multinational infrastructure company headquartered in Mumbai, India. Listed on the National Stock Exchange (NSE), KEC is a global leader in the power transmission and distribution (T&D) sector, providing end-to-end solutions for power projects. The company has a presence in over 100 countries and has constructed over 80,000 circuit kilometers of transmission lines and 2.5 million MVA of substations. KEC also offers a range of other services, including railway electrification, urban infrastructure development, and smart grid solutions.

52 Week Price Trend:

At the current market price of Rs 860.15, Kec Intl. (NSE:KEC) is trading 15.16% above its 52-week high of Rs 747.7. However, it is still moderately priced compared to its 52-week low of Rs 442.8, offering a potential upside of around 94%. The company's strong order book and focus on expanding its international presence are positive factors that could support further growth in the future.

Stratzy's MOST Analysis:

KEC has earned an "AAA" rating under Stratzy's MOST Framework, indicating a low Fundamental Risk. This rating is based on a comprehensive assessment of the company's Management, Outlook, Safety, and Trend. KEC's strong management team, positive market outlook, commitment to safety, and consistent growth trajectory have contributed to this exceptional rating.

Company's Fundamentals:

KEC Intl. (NSE: KEC), a leading engineering and construction company, currently trades at a Stock PE (Price-to-Earnings ratio) of 64.57. This indicates that investors are willing to pay 64.57 times the company's annual earnings per share for its stock. The PB Ratio (Price-to-Book ratio) of 4.49 suggests that the market value of KEC's stock is 4.49 times the value of its assets, as per its latest financial statements. The Dividend Yield of 0.45% represents the annual dividend payout as a percentage of the current stock price, indicating the income investors can generate from the company's dividends.

Fundamental and Technical information provided in this blog were last updated on 13 Jun, 2024

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