KEC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Here’s a detailed analysis of KEC International Ltd (KEC)

📊 Core Financials

Profitability

EPS of ₹22.8 is solid, but quarterly PAT dropped sharply from ₹268 Cr to ₹125 Cr — a 53% decline, which raises short-term concerns.

ROCE at 18.0% is strong, indicating efficient capital usage.

ROE at 12.0% is decent, though not exceptional.

Debt & Liquidity

Debt-to-equity ratio of 0.74 — moderate leverage, manageable but worth monitoring.

Dividend yield of 0.64% — modest income for long-term holders.

📈 Valuation Metrics

Metric Value Remarks

P/E Ratio 37.7 Above industry average (23.8) — slightly overvalued

P/B Ratio ~4.28 Based on Book Value ₹201 — fair

PEG Ratio 2.21 High — growth not justifying valuation

Intrinsic Value ❓ Likely below current price due to recent earnings dip

🧠 Business Model & Competitive Edge

Model: Global EPC player with diversified operations in transmission, railways, civil, and smart infrastructure.

Strengths

Strong order book across multiple infrastructure verticals

Global footprint and execution capabilities

Challenges

Volatile earnings due to project-based revenue

Margin pressure from input costs and execution delays

📉 Technical & Sentiment Indicators

RSI at 44.2 — neutral zone, no strong momentum

MACD negative at -4.54 — bearish signal

DMA50 and DMA200 near current price — trend is flat

FII holding up (+0.60%), DII holding down (-1.63%) — mixed institutional sentiment

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹825–₹845 — near support and technical levels

Stop Loss: ₹805 (daily close basis)

Targets: ₹895 short-term, ₹950 medium-term

Long-Term Holding: Reasonable for infrastructure exposure. Watch for order execution and margin recovery. Ideal for moderate-risk investors with a 2–3 year horizon.

Want to explore how KEC compares with Kalpataru or Techno Electric in the EPC space? I can pull that up for you.

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