Infrastructure Developers & Operators · KECI
Power - Transmission/Equipment
from 451 today
KEC International reported 1QFY27 results below expectations due to transitory near-term challenges such as the West Asia crisis and labour shortages, but management remains confident on medium-term growth backed by a healthy order book and pipeline.
KEC reported revenue of Rs 5,024 Cr (flat YoY) with EBITDA and PAT missing estimates due to slower execution and near-term margin compression from geopolitical disruptions. We maintain our BUY rating on the stock with a revised target price of Rs 540/share, driven by strong long-term growth visibility and a robust order book.
We revised our EPS estimates by -1.8%/-6.3% for FY27E/28E factoring in sustained margin pressure and slower-than-expected working-capital normalisation amid Middle East-related disruptions and legacy project headwinds. The stock is currently trading at a P/E of 16.7x/12.1x on FY27/28E earnings. We maintain our 'Accumulate' valuing the business at a PE of 14x Mar'28E arriving at a TP of Rs523.
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