KEC INTERNATIONAL (IN), a company active in Heavy Construction, improves its general evaluation despite the loss of a fundamental star(s). The independent financial analyst theScreener has removed a fundamental star(s) from the title, which now shows 3 out of 4 stars; conversely, its market behaviour remains table and can be still described as defensive. The loss of a star(s) core is inconsequential since theScreener revises upgrades the general evaluation of the value to Positive. As of the ana...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
K E C INTL.: Commodity prices dent margin; strong order inflow outlook (KECI IN, Mkt Cap USD1.4b, CMP INR419, TP INR500, 19% Upside, Buy) KEC International (KECI)’s 1QFY22 revenue grew 15% YoY to INR25.4b and was 10% ahead of our expectation. Margins disappointed on account of commodity price inflation and weaker execution in the SAE business in Brazil. Thus, adj. PAT declined 35% YoY and was 36% below our expectations. Working capital deterioration was a negative development, while the k...
A director at KEC International Ltd bought 95,630 shares at 314.665INR and the significance rating of the trade was 57/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two year...
Q3FY20 result highlights Adj. PAT +31% yoy to Rs1.45bn: led by uptick in revenues & lower tax. Revenue growth +16% yoy to Rs28.1bn: led by uptick in T&D execution (+9% yoy; flat domestic T&D). SAE saw +122% yoy on low base & uptick in execution of EPC projects. Further, sustained execution in railways (9.1% yoy) and smart infra revenues (Rs330mn vs nil in 3Q19) boosted revenues. This was partially offset by decline in other segments (11% of revs): cables (-20% yoy; lower RM prices), solar (-...
K E C Intl.: In-line results; Strong new order wins led by Railways/Civil (KECI IN, Mkt Cap USD1.2b, CMP INR347, TP INR430, 24% Upside, Buy) We like KEC's business diversification story as concentration risk from the volatile Power T&D segment comes off. Currently, non-T&D business forms 45% (12% in FY14) of the order book and we expect it to further increase to 65%, led by the Railways/Civil segment. We maintain our earnings estimates, TP of INR430 (15x Mar'21 EPS) and Buy rating. New o...
Q2FY20 result highlights Adj. PAT +44% yoy to Rs1.39bn: led by strong revenues and lower tax. T&D execution picks up (+21% yoy): driving overall revenue growth at 16.6% yoy to Rs28.1bn. SAE saw +95% yoy on low base & uptick in execution. Further, sustained strong growth in railways (35% yoy) boosted revenues. This was partially offset by decline in other segments (11% of revs): cables (-6% yoy; lower RM), solar (-92% yoy) and civil (-51% yoy). Margins steady at 10.5% (flat yoy): as higher m...
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...
Q1FY20 result highlights Adj. PAT increased 4% yoy to Rs886mn: as operational performance was offset against higher depreciation. T&D execution picks up: Revenue growth was strong at 14.6% yoy to Rs24.13bn on pick up in execution in T&D (28.5% yoy) and in SAE (+13% yoy; EPC order execution) and sustained strong growth (67% yoy) in railways. This was offset by muted growth in Cables (+1.5% yoy; lower commodity prices) and decline in Solar (-79% yoy) & Civil (-45% yoy). Margins steady at 10.4...
K E C Intl.: Operating performance in line; Core T&D business picks up (KECI IN, Mkt Cap USD1.1b, CMP INR293, TP INR430, 47% Upside, Buy) In-line revenues supported by robust growth in T&D section: 1QFY20 consol. revenue grew 15% YoY to INR24.1b (in-line with our est. of INR24.5b). T&D business registered strong growth of 25% YoY with SAE growth at 13% YoY. Even the Railways segment registered healthy growth of 67% YoY with revenue of INR5.5b. The Cables business was flat, growing a meage...
We met the management of KEC International. Below are key takeaways: T&D order intake to see an uptick: Management expects Rs170-180bn order inflow in FY20E (20%+ yoy), led by growth across segments. SEBs would lead domestic T&D orders (Rs400-500bn worth of projects), led by under investment and multilateral funding. While PGCIL’s spend is muted, green energy corridor-led investments would drive ~Rs200bn worth of orders. Concurrently, international orders from SAARC countries (Bangladesh, Nepal...
K E C Intl.: Back on growth track post a challenging last year; Diversification playing out well, financial leverage to kick in (KECI IN, Mkt Cap USD1.1b, CMP INR321, TP INR438, 37% Upside, Buy) Business diversification to pick up pace: KEC International (KEC) has been attaining successful business diversification, reducing its dependency on Power T&D segment in general and Power Grid capex in particular. Key highlights: While Power Grid has traditionally been the largest customer for ...
Q4FY19 result highlights Adj. PAT fell 1% yoy to Rs1.94bn: on lower than expected revenues. T&D execution weak, to pick up going forward: Revenue growth was muted at 5% yoy to Rs38.4bn on slow execution in domestic T&D (-1.3% yoy) orders due to execution challenges in a domestic private project and muted 4% yoy growth in SAE due to delays in clearances in orders. This was offset by strong growth in non-T&D segments: Railways (+76.3% yoy), Civil (+29.4% yoy) and Cables (+25.5% yoy). Margins ...
K E C Intl.: Working capital pressure eases; execution to ramp up (KECI IN, Mkt Cap USD1.1b, CMP INR294, TP INR347, 18% Upside, Upgrade to Buy) Lower execution leads to earnings miss: 4QFY19 revenues grew a tepid 5% YoY to INR38.4b (6% below expectation), while EBITDA margin expanded 30bp YoY to 10.4% (v/s expectation of 10.3%). Overall, PAT was flattish at INR2.0b (8% below expectation). Debt reduction — a pleasant surprise: A key positive from the 4QFY19 results was the sharp reduction ...
Q3FY19 result highlights PAT was flat yoy (+0.6%) at Rs1.12bn: on higher interest costs. T&D execution weak, to pick up going forward: Revenue growth was lower than expected at 10% yoy to Rs26.1bn on slow execution in domestic T&D (+2% yoy) orders due to elections and delays in clearances in international orders, particularly at SAE (-38.9% yoy). This was offset by strong growth in non-T&D segments: Railways (+164.9% yoy), Civil (+26.4% yoy) and Cables (+14% yoy). Margins expand (+40bps yoy...
K E C Intl.: Core T&D weak; T&D execution/non-T&D growth to drive performance (KECI IN, Mkt Cap USD0.9b, CMP INR237, TP INR260, 10% Upside, Neutral) revenue below estimate: Consol. revenue grew 10.1% YoY to INR26.4b in 3QFY19, below our estimate of INR28.0b. All business segments, barring T&D, grew strongly. T&D business (excluding SAE) grew by a muted 2% YoY due to a delay in approvals in international projects. Cables business grew 14% YoY, Railways grew 165% YoY, Solar, Civil and Wate...
Opportunity in EM countries Our cautious outlook and expectation for continued downward pressure on global equities remains intact. Broad global indexes (MSCI ACWI, ACWI ex-U.S., EAFE, and EM) are all trading within patterns of lower highs and lower lows, leading us to believe the most likely scenario is that this near-term bounce is likely nothing more than a countertrend rally before longer-term downtrends reassert themselves. • Opportunity in EM. Both a top-down and bottoms-up analysis po...
Q2FY19 result highlights PAT +10% yoy to Rs978mn: on margin expansion. T&D execution weak, to pick up going forward: Revenues were up 13% yoy to Rs24.1bn on robust execution across non-T&D segments: Railways (+3.6x yoy) and Civil (+2.6x yoy) as also cables (+11% yoy). However, T&D (-11% yoy) was weak as most orders have yet to see meaningful exectuion. Margins +40bps to 10.4%: despite adverse mix towards non-T&D revenues as scale in railways is driving margin expansion. Moreover, forex gai...
Q2FY19 result highlights PAT +10% yoy to Rs978mn: on margin expansion. T&D execution weak, to pick up going forward: Revenues were up 13% yoy to Rs24.1bn on robust execution across non-T&D segments: Railways (+3.6x yoy) and Civil (+2.6x yoy) as also cables (+11% yoy). However, T&D (-11% yoy) was weak as most orders have yet to see meaningful exectuion. Margins +40bps to 10.4%: despite adverse mix towards non-T&D revenues as scale in railways is driving margin expansion. Moreover, forex gai...
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