Buy KEC International with a target at Rs 166: Centrum Wealth Research

Centrum Wealth Research maintains buy rating on KEC International post March quarter results with a 12-month target price of Rs 166.

The management in its post result conference call has maintained its FY17 EBITDA margin guidance of 8.5 per cent and revenue growth guidance of 10 per cent. KEC has been performing well operationally, in line with our expectation.

It has given a return of 9 per cent since our Q3FY16 update (Feb 5, 2016). "Turnaround in its subsidiary - SAE Tower, better margin orders from State Electricity Boards (SEBs), railway and cables segments are likely to be key triggers," said the brokerage note.