05 May , 2022 By : Kanchan Joshi
Stock to buy today: KEC International share price has remained sideways to negative throughout the year, which was expected as the company caters to power transmission tower business, which is a part of infrastructure sector. As entire infra sector has been reeling under the Covid-19 pressure, KEC International also had to face the pandemic challenge in this period. However, in the wake of unlock theme, Yes Securities sees strong upside in the stock in long term expecting KEC International share price target of Rs520 apiece levels. KEC International share price today is Rs383 that means the brokerage is expecting near 39 per cent jump in this power infra stock.
Highlighting the fundamentals that may fuel KEC International shares, Yes Securities research report says, "We believe KECI is well poised to gain from upcoming opportunities in infrastructure segment given 1) diversified business model, 2) healthy market share in T&D segment, 3) excellent execution track record with strong parentage and 4) comfortable balance sheet. On account of disappointing FY22 performance and margin pressure we have revised our EPS estimate downwards by 28%/4% for FY23E/24E."
The brokerage report went on to add that order inflows of KEC International in Q4FY22 remained muted at Rs30.8bn (down 39% YoY). However, order book continues to remain comfortable at Rs237bn (excluding L1 orders worth Rs40bn ).
On its recommendation to positional investors in regard to KEC International shares, Yes Securities report says, "The stock is currently trading at 16.7x / 10.1x FY23E/24E earnings. However, on account of steep correction in the stock price (down 28% in 3 months), we upgrade our rating to BUY with a revised TP of Rs520 (earlier TP of Rs541) valuing it at 14x (its 5 percent year average PE) on FY24E earnings."
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