KEC INTL GETS BUY TAG FROM ASHIKA

KEC International Ltd. ( KEC), the flagship company

of RPG Group, is one of the leading power transmission, engineering- procurement

construction ( EPC) companies in the world. KEC’s selective business approach coupled with a diversified geographical reach equips it to optimise on

business margins and cash flows which in turn helps the company’s margin to be robust primarily lead by

rising margins in new businesses as it bags better margin projects in railways

and water. Moreover, a robust order backlog mix between international and domestic orders and expected

higher order flows from PGCIL towards the end of the

year will sustain earnings momentum. Further, balance

sheet of the company is expected to improve with debt repayment from Thane land deal of ` 200 crore, which will reduce financial charges and

improve return ratio. Currently, margins are

under pressure due to increase in competitive intensity and entry into new business vertical. With robust revenue growth visibility

already in place, the brokerage believes that KEC is looking good for

investment. Broking firm: Ashika

Research Rating: Buy Closing price: ` 101.60