KEC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | KEC | Market Cap | 14,926 Cr. | Current Price | 561 ₹ | High / Low | 947 ₹ |
| Stock P/E | 39.1 | Book Value | 194 ₹ | Dividend Yield | 0.98 % | ROCE | 14.6 % |
| ROE | 7.00 % | Face Value | 2.00 ₹ | DMA 50 | 578 ₹ | DMA 200 | 688 ₹ |
| Chg in FII Hold | -1.91 % | Chg in DII Hold | 1.39 % | PAT Qtr | 78.7 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 47.8 | MACD | 2.95 | Volume | 6,08,536 | Avg Vol 1Wk | 8,45,776 |
| Low price | 501 ₹ | High price | 947 ₹ | PEG Ratio | -2.52 | Debt to equity | 0.90 |
| 52w Index | 13.4 % | Qtr Profit Var | 8.00 % | EPS | 12.9 ₹ | Industry PE | 18.5 |
Entry Zone: 550 ₹ – 570 ₹ (near 50 DMA support)
Exit Guidance: 600 ₹ – 620 ₹ (resistance zone)
Holding View: Medium-term cautious holding with valuation and leverage risk
Positive
- Dividend yield of 0.98% provides modest shareholder returns
- EPS of 12.9 ₹ supports profitability
- DII holdings increased (+1.39%), signaling domestic institutional support
- Quarterly PAT growth (106 Cr → 78.7 Cr) stabilizing after prior weakness
- Stock trading near 50 DMA (578 ₹) offers potential entry support
Limitation
- High P/E of 39.1 compared to industry PE of 18.5 — valuation stretched
- Weak ROE (7%) and moderate ROCE (14.6%) reflect limited capital efficiency
- PEG ratio of -2.52 indicates poor growth alignment with valuation
- High debt-to-equity ratio (0.90) raises financial risk
- Decline in FII holdings (-1.91%) shows reduced foreign investor confidence
Company Negative News
- Sharp quarterly profit decline impacting sentiment
- High leverage compared to peers may limit flexibility
Company Positive News
- Domestic institutional accumulation supports stability
- Dividend yield provides consistent though modest returns
- Technical indicators (RSI 47.8, MACD 2.95) show neutral momentum
Industry
- Industry PE at 18.5, much lower than KEC’s 39.1 — sector valuations more moderate
- Sector momentum modest with 52-week index return of 13.4%
Conclusion
KEC International demonstrates moderate fundamentals with dividend yield and domestic institutional support, but faces stretched valuations, weak ROE, and high leverage. Entry near 550–570 ₹ offers a risk-managed opportunity, with exits around 600–620 ₹ advisable. Long-term holding requires cautious monitoring of debt levels and earnings consistency, as valuation premium and reduced foreign participation limit upside potential.
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