Anand Rathi 's research report on KEC International
With better execution in its non-T&D business (railways/civil up 45%/ 306%), KEC’s performance beat our expectations. Its T&D business, though better sequentially, was flat y/y at Rs2bn (largely in line with ARe). Management talked of a strong bid pipeline for this segment and we see robust order inflows in coming quarters. The execution rampup, robust revenue assurance (Rs195bn order backlog), strong bid pipeline, focus on reducing interest costs, and cash collection, gives us the required assurance of strong future execution and earnings.
Outlook
We maintain a Buy with an unchanged TP of Rs398 (13x FY23e).
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