Buy KEC International, target price Rs 540: ICICI Securities

ICICI Securities has buy call on KEC International with a target price of Rs 540. The current market price of KEC International is Rs 457.6.

KEC International, incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 11793.93 Crore) operating in Power sector.

KEC International key Products/Revenue Segments include Income from Eng. Construction Contracts, Cables, Scrap, Towers & Structurals, Sale of services, Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 4376.34 Crore, up 7.26 % from last quarter Total Income of Rs 4080.14 Crore and up 30.83 % from last year same quarter Total Income of Rs 3345.06 Crore. Company has reported net profit after tax of Rs 17.60 Crore in latest quarter.

The company’s top management includes Mr.H V Goenka, Mr.M S Unnikrishnan, Mr.Vikram Gandhi, Mr.Ramesh Chandak, Mr.S M Trehan, Ms.Nirupama Rao, Mr.G L Mirchandani, Mr.Dilip G Piramal, Mr.A T Vaswani, Mr.Vimal Kejriwal, Mr.Vinayak Chatterjee. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-12-2022, the company has a total of 26 Crore shares outstanding.

Investment Rationale
The brokerage reiterates its positive stance on strong T&D ordering, sustaining for the next 4-5 years, led by government’s consistent measures to increase the transmission capacity.

Promoter/FII Holdings
Promoters held 51.88 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.62 per cent, DIIs 25.54 per cent.