KEC International Q1 Results Review - Strong Order Book Outlook; Execution A Watch-Out: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.KEC International Ltd.'s Ebitda margin was below our estimate by 114 basis points – mainly due to underperformance in the cable segment. Transmission and distribution and Solar are expected to remain key growth drivers in the medium term, with strong order book visibility and efficient execution. Buoyant traction due to the thrust on renewables is expected to drive the domestic order book. Collections of ~Rs 160 crores have been made from Afghanistan, with almost ~Rs 200 crore yet to be recovered. Aluminium Conductor plant in cables is expected to start in Q3 FY25. The cables segment is expected to post ~20% CAGR top line growth, with margins expected to land at ~9.5% over the medium term.The railways segment is expected to deliver subdued performance in the medium term on the back of increased competition and delays in collections period. We maintain Accumulate with a revised target price of Rs 935. This implies a PE of 20 times on June’26E EPS and it is at ~35% discount to the five-year historical average PE multiple on 1-yr forward basis. We believe that the multiple is fair. Near term outlook remains challenging, mainly due to the pain in the railways segment. We expect meaningful margin improvement from FY26 onward as orders will begin to flow in, on the back of infrastructural spends, and execution will pick up pace..Click on the attachment to read the full report:.KEC International To Raise Up To Rs 6,000 Crore Through QIP, NCDs.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

KEC International Q1 Results Review - Strong Order Book Outlook; Execution A Watch-Out: Nirmal Bang

The brokerage expects meaningful margin improvement from FY26 onward as orders will begin to flow in, on the back of infrastructural spends, and execution will pick up pace.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

KEC International Q1 Results Review - Strong Order Book Outlook; Execution A Watch-Out: Nirmal Bang

The brokerage expects meaningful margin improvement from FY26 onward as orders will begin to flow in, on the back of infrastructural spends, and execution will pick up pace.

Choose a plan

Follow Us

DOWNLOAD THE APP