IIFL Securities's Stock Pick Today: Buy Kec Intl. with Target Rs 805

IIFL Securities recommends buying Kec Intl. with a target price of Rs 805. The current market price of Kec Intl. is Rs 787.05. This suggests a potential upside of 2.31%. The call is based on the company's strong order book, healthy margins, and improving demand outlook. Kec Intl. is a leading manufacturer of power transmission and distribution products. It has a strong presence in India and is expanding its international footprint. The company's recent financial results have been encouraging, and it is expected to continue to grow in the coming quarters.

About Kec Intl.:

KEC International Limited (KEC) is an Indian multinational engineering, procurement, and construction (EPC) company headquartered in Mumbai. Listed on the National Stock Exchange (NSE) of India, KEC specializes in power transmission and distribution, railways, and civil infrastructure projects. The company has a presence in approximately 100 countries and employs over 39,000 people. KEC is known for its expertise in turnkey project execution, with a focus on safety, quality, and sustainability.

52 Week Price Trend:

KEC International (KEC) has experienced significant growth in the past year, with its CMP of Rs 787.05 standing well above its 52-week high of Rs 747.7. This growth can be attributed to strong performance in its core businesses, including power transmission and distribution, railways, and solar energy. KEC has benefited from increased demand for infrastructure development in India and other emerging markets. Despite occasional fluctuations, the stock price has maintained a strong upward trend, indicating the company's robust financial performance and potential for further growth in the future.

Stratzy's MOST Analysis:

KEC has achieved a top-tier AAA rating from Stratzy's MOST framework, indicating that it has strong fundamentals across all four pillars: Management, Outlook, Safety, and Trend. This rating signifies that KEC has a solid management team, positive growth prospects, a commitment to safety, and a favorable market trend. The AAA rating suggests that KEC has a low fundamental risk, making it an attractive investment opportunity.

Company's Fundamentals:

Kec Intl. (NSE: KEC) is a noteworthy company on the National Stock Exchange of India. Its financial ratios shed light on the firm's valuation and potential returns. The stock PE ratio of 64.57 implies that investors are willing to pay 64.57 times KEC's current earnings per share for each share they own. The PB ratio of 4.49 indicates that the market value of the company's assets is 4.49 times its book value. Lastly, the dividend yield of 0.45% represents the annual dividend paid out to shareholders as a percentage of the current stock price, providing a modest income stream for investors.

Fundamental and Technical information provided in this blog were last updated on 16 May, 2024

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