The IIFL Securities Report: Buy Kec Intl.

IIFL Securities issues a buy call on Kec International (Kec Intl.) with a target price of Rs 790, representing a potential upside of 2.7% from the current market price of Rs 769.2. The brokerage firm believes that the company's strong financial results, healthy order book, and focus on new business segments position it for sustained growth. This recommendation aligns with the company's recent announcement of a strong revenue increase and robust order intake, indicating a positive outlook for its future performance.

About Kec Intl.:

KEC International (KEC) is an Indian multinational engineering, procurement, and construction (EPC) company headquartered in Mumbai. Listed on the National Stock Exchange (NSE) of India, KEC provides EPC services for power transmission and distribution, railways, civil, and urban infrastructure projects. With operations in over 30 countries, the company has a strong global footprint and expertise in designing, engineering, and executing complex infrastructure projects. KEC is a subsidiary of RPG Group, a diversified conglomerate with interests in various sectors such as engineering, construction, energy, and pharmaceuticals.

52 Week Price Trend:

KEC International (NSE: KEC) trades at Rs 769.2, within the range of its 52-week high of Rs 747.7 and low of Rs 442.8. Over the past year, the stock has experienced significant volatility, fluctuating between the two extremes. Despite its recent gain, it remains below its 52-week high, indicating potential room for further growth. However, investors should be aware of the potential risks associated with the stock's historical volatility and consider their investment goals and risk appetite before making any decisions.

Stratzy's MOST Analysis:

KEC has been assigned an AAA rating by Stratzy's MOST Framework, indicating that it has strong fundamentals and low risk. This rating is based on KEC's strong management team, positive outlook, commitment to safety, and favorable industry trends. The company's management team has a proven track record of success, and the company has a solid financial position. KEC also has a positive outlook for the future, with strong growth prospects in its core markets. The company's commitment to safety is reflected in its low accident rates, and it has a strong safety culture in place. Finally, the industry trends are favorable for KEC, with increasing demand for its products and services.

Company's Fundamentals:

Kec International (KEC) is a leading infrastructure EPC (Engineering, Procurement, and Construction) company listed on the NSE. KEC's current stock PE (Price-to-Earnings) ratio of 64.57 indicates that investors are willing to pay 64.57 times the company's annual earnings per share. The PB Ratio (Price-to-Book) of 4.49 means that the market value of KEC's stock is 4.49 times its book value, suggesting a premium over its net assets. However, KEC's Dividend Yield of only 0.45% indicates a low return on investment from dividends. These metrics provide insights into KEC's market valuation, profitability, and dividend policy, enabling investors to make informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 15 May, 2024

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