KEC reported a steady set of Q4FY21 numbers. The topline came in at Rs. 4360.5 crore, up 18.8% YoY, (above our estimate of Rs. 4053.9 crore) aided by strong growth in non-T&D. Overall, T&D contributed 51% followed by railways (28%), civil (11%) and cable (8%) to revenues. EBITDA margins came in at 8.1% (below our estimate of 8.9%), down 200 bps YoY mainly impacted by execution headwinds in SAE (Brazil) and commodity prices, while absolute EBIDTA came in at Rs. 354.5 crore, down 4.4% YoY. PAT came in at Rs. 194.3 crore, almost flat YoY.
Valuation & Outlook
KEC delivered a steady Q4FY21 performance driven by strong growth in non-T&D segment amid challenges in T&D-SAE and commodity price impact. However, T&D is likely to rebound in the medium term providing further accelerated execution. Also, a backlog of Rs. 19109 crore, strong profitable traction in railways, civil business and focus on operational efficiencies would further de-risk its business model in the medium term. We expect KEC to deliver revenue, EBITDA, PAT CAGR of 10.4%, 9.1%, 13.0%, respectively, in FY20-23E. We revise our target price to Rs. 445/ share (earlier Rs. 450/ share) at 14x FY23E EPS and maintain our BUY rating.
For details, click on the link below: Link to the report
Shares of KEC INTERNATIONAL LTD. was last trading in BSE at Rs.381.8 as compared to the previous close of Rs. 381.1. The total number of shares traded during the day was 41645 in over 1358 trades.
The stock hit an intraday high of Rs. 397 and intraday low of 378. The net turnover during the day was Rs. 16120700.