KEC International shares down 32% in 6 months - What should investors do post Q4 results?

KEC International shares ended slightly higher on Wednesday, closing 0.55% higher at Rs 472.10 on the BSE, up from their previous close of Rs 469.50. Following the company's Q4 results declared on May 16, brokerages have trimmed their target prices. 

Axis Direct

Despite the near-term bumps, Axis Direct maintained a ‘Buy’ rating, though it slashed its target price to Rs 590 from Rs 920 per share. The brokerage currently values the stock at 15.5x FY28E EPS.  

“We expect the company to deliver Revenue/EBITDA/PAT growth of 13%/19%/29% CAGR from FY26-28E. The recent stock correction presents an attractive entry opportunity, offering a compelling risk–reward profile for medium-to long-term investors,” Axis said.

PL Capital

PL Capital retained its ‘Accumulate’ rating but lowered its target price to Rs 558 from Rs 748, valuing the business at a PE of 14x Mar’28E.  The brokerage pointed out that the West Asia crisis led to "slower project execution and inability to dispatch material from the Dubai factory". PL Capital revised their EPS estimates by -30.1%/-23.9% for FY27E/FY28E. 

“However we remain constructive on KEC in the long term given its 1) strong order book, 2) healthy execution momentum, 3) robust T&D outlook, especially in renewable energy, and 4) expansion of Cables business,” PL Capital said.

HDFC Securities

HDFC Securities maintained an ‘Add’ rating, trimming its target price to Rs 557 from Rs 781. The brokerage observed that KEC's Q4 performance missed its revenue, EBITDA, and APAT estimates.  

“We have reduced the valuation multiple from 17x to 15x, owing to slower-than-expected margin recovery trajectory as supply chain issues prolong,” HDFC said.