Multibagger stock rose 37% from 52-week low, slipped 4% today; what's next?
The stock closed at Rs 833.05, down 3.68% in the current session. Market cap of the firm fell to Rs 22,175 crore.
- May 30, 2025,
- Updated May 30, 2025 5:02 PM IST
Shares of KEC International have surged 37% from their 52 week low this year. KEC International stock fell to a yearly low of Rs 605 on April 7, 2025. The stock closed at Rs 833.05, down 3.68% in the current session. Market cap of the firm fell to Rs 22,175 crore. The civil construction stock has gained 115.70% in three years and risen 323% in five years. A total of 0.89 lakh shares of the firm changed hands amounting to a turnover of Rs 7.51 crore.
KEC International shares have a beta of 1.3, indicating high volatility in a year.
In terms of technicals, the relative strength index (RSI) of the KEC International stock stands at 68.4, signaling it's trading neither in the overbought nor in the oversold zone.
Brokerage Nuvama has assigned a price target of Rs 994 to the stock with hold rating.
"We are factoring in a sales CAGR of 15% over FY26–27E, EBITDA margin of 8.3%/8.9% in FY26E/27E (versus guidance of 8–8.5%/9%+). Despite raising the PE to 20x FY27E, yielding a revised TP of Rs 994 (previously Rs 884), we find limited upside; retain ‘HOLD’, said Nuvama.
Key risks to assumptions
The brokerage said ongoing delays in executing its current order book are raising concerns about revenue and operating profit margin (OPM) projections.
A significant slowdown in Transmission and Distribution (T&D) spending in critical markets such as India, the Middle East, and various African countries is a risk for the stock going ahead.
Additionally, there are risks related to foreign exchange fluctuations and commodity prices, especially since approximately 50% of KEC's contracts are fixed-price agreements.
KEC International has received a price target of Rs 1030 from Axis Securities.
The management has guided for 15% revenue growth with EBITDA margins in the 8-8.5% range in FY26. The order inflow target for FY26 is Rs 30,000 Cr, said the brokerage.
"The stock is currently trading at 24x/17x FY26E/27E EPS. We maintain our BUY rating on the stock and value it at 20x FY27E EPS with a TP of Rs 1030/share," said the brokerage.
The company has a well-diversified and robust order book and an L1 position, providing healthy revenue visibility for the next 18-24 months. Moreover, the favourable government emphasis on T&D and the extension of JJM till 2028 in the Union Budget bode well for the company moving forward, the brokerage added.
KEC International reported a 76% rise in its consolidated net profit to Rs 268 crore for the March quarter. This growth comes on the back of higher revenues, compared to a net profit of Rs 152 crore for the same period in the previous financial year.
In this latest quarter, KEC saw its revenues rise to Rs 6,872 crore, up from Rs 6,165 crore a year earlier—an impressive growth of 11.46%. Additionally, the company's EBITDA (earnings before interest, tax, depreciation, and amortization) surged to Rs 539 crore, compared to Rs 388 crore in Q4 FY24.
KEC International is a global infrastructure engineering, procurement and construction (EPC) major. It has presence in the verticals of power transmission and distribution, railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables. The company is currently executing infrastructure projects in 30 plus countries and has a footprint in 110 plus countries (includes EPC, supply of towers and cables). It is the flagship company of the RPG Group.
Shares of KEC International have surged 37% from their 52 week low this year. KEC International stock fell to a yearly low of Rs 605 on April 7, 2025. The stock closed at Rs 833.05, down 3.68% in the current session. Market cap of the firm fell to Rs 22,175 crore. The civil construction stock has gained 115.70% in three years and risen 323% in five years. A total of 0.89 lakh shares of the firm changed hands amounting to a turnover of Rs 7.51 crore.
KEC International shares have a beta of 1.3, indicating high volatility in a year.
In terms of technicals, the relative strength index (RSI) of the KEC International stock stands at 68.4, signaling it's trading neither in the overbought nor in the oversold zone.
Brokerage Nuvama has assigned a price target of Rs 994 to the stock with hold rating.
"We are factoring in a sales CAGR of 15% over FY26–27E, EBITDA margin of 8.3%/8.9% in FY26E/27E (versus guidance of 8–8.5%/9%+). Despite raising the PE to 20x FY27E, yielding a revised TP of Rs 994 (previously Rs 884), we find limited upside; retain ‘HOLD’, said Nuvama.
Key risks to assumptions
The brokerage said ongoing delays in executing its current order book are raising concerns about revenue and operating profit margin (OPM) projections.
A significant slowdown in Transmission and Distribution (T&D) spending in critical markets such as India, the Middle East, and various African countries is a risk for the stock going ahead.
Additionally, there are risks related to foreign exchange fluctuations and commodity prices, especially since approximately 50% of KEC's contracts are fixed-price agreements.
KEC International has received a price target of Rs 1030 from Axis Securities.
The management has guided for 15% revenue growth with EBITDA margins in the 8-8.5% range in FY26. The order inflow target for FY26 is Rs 30,000 Cr, said the brokerage.
"The stock is currently trading at 24x/17x FY26E/27E EPS. We maintain our BUY rating on the stock and value it at 20x FY27E EPS with a TP of Rs 1030/share," said the brokerage.
The company has a well-diversified and robust order book and an L1 position, providing healthy revenue visibility for the next 18-24 months. Moreover, the favourable government emphasis on T&D and the extension of JJM till 2028 in the Union Budget bode well for the company moving forward, the brokerage added.
KEC International reported a 76% rise in its consolidated net profit to Rs 268 crore for the March quarter. This growth comes on the back of higher revenues, compared to a net profit of Rs 152 crore for the same period in the previous financial year.
In this latest quarter, KEC saw its revenues rise to Rs 6,872 crore, up from Rs 6,165 crore a year earlier—an impressive growth of 11.46%. Additionally, the company's EBITDA (earnings before interest, tax, depreciation, and amortization) surged to Rs 539 crore, compared to Rs 388 crore in Q4 FY24.
KEC International is a global infrastructure engineering, procurement and construction (EPC) major. It has presence in the verticals of power transmission and distribution, railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables. The company is currently executing infrastructure projects in 30 plus countries and has a footprint in 110 plus countries (includes EPC, supply of towers and cables). It is the flagship company of the RPG Group.