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Epic Research
KEC Intl (Buy)
CMP: ₹371.85
Target: ₹450
KEC International is part of RPG Group and an Indian Multinational EPC Major. Company has experience of over seven decades and has diversified business in 64 countries across five business verticals. KEC is presently executing 150+ projects out of which 29 are EPC projects in 29 counties. Company is well positioned across geography to gain from improving business outlook and signs of recovery across major global economy.
The valuation metrics for KEC are strong and offer a lot of upside for long term investors. We believe company would benefit from resurgence in international market and the infrastructure spending by domestic government in power T&D, Railways and civil works.
We expect company to maintain 10 per cent CAGR on top line. KEC international has maintained good margin efficiency which reflects in its past performance. Despite normal growth in revenues, the bottom-line has done exceedingly well in terms of margins. Historically, stock has traded at average of 20x of EPS with standard deviation of 4.9.
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