External broker reports(aggregated public sources), HDFC Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

<p>We have a BUY rating on the stock with a target price of INR 452/sh (14x Mar-23 EPS). We attended the KEC International (KECI) Annual Investor Conference 2021 on 16 June 2021. We note the following key takeaways from the call: (1) YTD order inflow is at INR 30bn. T&amp;D; and non-T&amp;D; businesses could see INR 80-90bn ordering each in FY22; (2) While domestic T&amp;D; ordering is expected to remain muted, the MENA region is seeing increased traction; (3) KEC wants to transform itself into an engineering major rather than just being an EPC company; (4) Civil business could grow 100%/50% in FY22/23 , while railways could grow 30% in FY22; (5) Margin profile would change once civil achieves scale; (6) KECI would drive productivity through digitisation, mechanisation and automation; (7) Working capital could be trimmed by 15-20% (to sub 100days) as civil business grows.</p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

We have a BUY rating on the stock with a target price of INR 452/sh (14x Mar-23 EPS). We attended the KEC International (KECI) Annual Investor Conference 2021 on 16 June 2021. We note the following key takeaways from the call: (1) YTD order inflow is at INR 30bn. T&amp;D; and non-T&amp;D; businesses could see INR 80-90bn ordering each in FY22; (2) While domestic T&amp;D; ordering is expected to remain muted, the MENA region is seeing increased traction; (3) KEC wants to transform itself into an engineering major rather than just being an EPC company; (4) Civil business could grow 100%/50% in FY22/23 , while railways could grow 30% in FY22; (5) Margin profile would change once civil achieves scale; (6) KECI would drive productivity through digitisation, mechanisation and automation; (7) Working capital could be trimmed by 15-20% (to sub 100days) as civil business grows.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

KEC International (Update): Building on diversification. Maintain BUY