KEC International
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
KEC International's outlook reflects a resilient stance despite facing near-term operational challenges, primarily due to geopolitical disruptions and execution delays. Management's focus on expanding its transmission and distribution (T&D) business, particularly in high-voltage direct current (HVDC) and renewable integration, positions the company favorably for long-term growth. The robust order book of INR 377 billion and a substantial tender pipeline indicate strong revenue potential, supporting Vista's forecast of a 13% CAGR through FY28. However, the company must navigate immediate headwinds, including rising logistics costs and payment delays, which could impact margins. The competitive landscape remains challenging, with pricing pressures prevalent in the infrastructure sector. Nevertheless, KEC's strategic initiatives in digital transformation and operational excellence are expected to enhance project delivery and mitigate risks. Overall, while the near-term outlook is cautious, the long-term growth trajectory remains intact, bolstered by India's ambitious infrastructure plans and the company's diversification into high-growth segments like data centers and specialty cables
Why We Like This Stock
- Strong order book and tender pipeline provide significant revenue visibility
- Strategic focus on high-growth areas like renewable energy and data centers enhances long-term growth potential
- Management's commitment to operational excellence and digital transformation aims to improve project execution and mitigate risks
Things To Watch Out For
- Geopolitical disruptions and supply chain issues are currently impacting execution and margins
- Rising logistics costs and payment delays pose challenges to profitability in the near term
- Competitive pricing pressures in the infrastructure sector may limit margin expansion
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 19,914 | 21,847 | 23,506 | 23,024 | 26,279 |
| Profit Before Tax (Cr.) | 425 | 722 | 848 | 666 | 940 |
| PBT Margin | 2.1% | 3.3% | 360.8% | 2.9% | 3.6% |
| Net Profit (Cr.) | 313 | 455 | 654 | 515 | 728 |
| Earnings Per Share | 11.7 | 17.1 | 24.6 | 19.4 | 27.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 540 | 12-Aug-2026 |
| Elara Capital | ▲ Buy | 700 | 19-May-2026 |
| HDFC Securities | ► Add | 557 | 27-May-2026 |
| JMFinancials | ▲ Buy | 705 | 27-May-2026 |
| Kotak Securities | ▼ Sell | 510 | 27-May-2026 |
| Motilal Oswal | ▲ Buy | 580 | 12-Aug-2026 |
| Nomura | ► Neutral | 495 | 12-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 523 | 12-Aug-2026 |
Company Overview
Show Company Profile
KEC International Limited engages in the engineering, procurement, and construction (EPC) business. It designs, manufactures, supplies, and erects transmission lines on turnkey basis; executes gas insulated transmission lines; undertakes EPC projects of high voltage electrical switching and distribution substations, as well as transmission lines in oil field areas; and turnkey solutions for railway contracts. The company also provides civil engineering solutions for transportation; urban infrastructure; industrial; residential and defense; commercial, public space, and datacenters; water; and international projects. In addition, it is involved in the provision of solar EPC services for large solar PV projects and PV solutions for industrial and commercial consumers; and design and engineering, project execution and management, bid management, and project feasibility analysis for large-scale solar photovoltaic power plants, as well as roof-top solar PV projects. Further, the company undertakes the construction of oil and gas / slurry pipelines and composite mechanical, civil, electrical, and instrumentation work in hydrocarbon facilities. The company manufactures and exports power cables, including EHV, HT and LV, telecom and optical fiber cables, control and instrumentation cables, and railway cables and conductors; special-purpose cables, such as cathodic protection, concentric, flat submersible, electric vehicle charging, hybrid, and green cables; and provides turnkey cabling solutions. KEC International Limited was founded in 1945 and is headquartered in Mumbai, India. KEC International Limited is a subsidiary of RPG Enterprises Limited.