Sharekhan's research report on KEC International
KEC posted healthy revenue growth driven by strong execution in T&D business both in domestic as well as international markets with stable OPM. However, increased depreciation, interest expense and lower other income led to lower-than-expected profitability. Management reiterated its guidance for 15-20% revenue growth with stable OPM and KEC is expected to deliver strong growth on increased scalability in non-T&D business and stable execution in the T&D segment. We expect 21% earnings CAGR over FY2020- FY2021E given healthy order backlog and ability to ramp-up execution.
Outlook
We maintain Buy on KEC International Limited (KEC) with unchanged price target of Rs. 375.
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