MOSL: K E C INTL. (Buy)-Pick-up in new ordering key to re-rating
K E C Intl.: Pick-up in new ordering key to re-rating
(KECI IN, Mkt Cap USD1b, CMP INR274, TP INR430, 57% Upside, Buy)
- In-line earnings: 2QFY20 consol. revenue grew 17% YoY to INR28.1b (in-line) EBITDA grew 16.1% to INR2.9b, with EBITDA margin of 10.5%. PBT grew 21% YoY to INR1.8b (in-line). Tax rate for the quarter stood at 22.9%. As a result, Adj. PAT grew 44.4% to INR1.4b.
- 1HFY20 performance: Revenue/EBITDA/adj. PAT grew 15.7%/16.1%/24.3% YoY.
- T&D and railway segment continue to see strong execution: T&D business registered strong growth of 30% YoY with SAE growth at 94% YoY. Even the Railways segment registered healthy growth of 35% YoY. Cables business was down 6% on account of easing of commodity prices. T&D revenue stood at 70% of the total revenue v/s 63% in 2QFY19, while non-T&D contributed 30% v/s 37% in 1QFY19.
KEC International is engaged in the design, manufacture, construction and erection of power transmission lines and related towers in India and other countries. In addition, Co. is engaged in the manufacture and sale and/or resale of petrochemicals including methyl ethyl ketone and isopropyl alcohol. Co. also provides investments and financial services.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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