KEC International - 3QFY17 Result Update - Strong Order Backlog & Improving Margins to Drive Growth - Reliance Securities

We expect steady improvement in KEC's margins driven by reducing backlog of low-margin legacy orders and improved margin profile in new orders. We expect strong order backlog of Rs111.8bn and improving margins would drive 27.5% CAGR in KEC's earnings over FY16-18E. Maintaining our earnings estimates for FY17E & FY18E, we reiterate our BUY recommendation on the stock with an unrevised Target Price of Rs170, valuing stock at 13x FY18E EPS.

Shares of KEC INTERNATIONAL LTD. was last trading in BSE at Rs.151.2 as compared to the previous close of Rs. 152.45. The total number of shares traded during the day was 43873 in over 723 trades.

The stock hit an intraday high of Rs. 154 and intraday low of 151. The net turnover during the day was Rs. 6674774.

Source : Equity Bulls

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