BSE:532714

Stock Analysis Report

Executive Summary

KEC International Limited, together with its subsidiaries, primarily engages in the engineering, procurement, and construction (EPC) business.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has KEC International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532714 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

532714

-1.2%

IN Construction

-0.07%

IN Market


1 Year Return

36.3%

532714

-2.0%

IN Construction

9.5%

IN Market

Return vs Industry: 532714 exceeded the Indian Construction industry which returned -2% over the past year.

Return vs Market: 532714 exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

532714IndustryMarket
7 Day1.0%-1.2%-0.07%
30 Day2.2%-6.7%-1.3%
90 Day22.9%-6.0%1.9%
1 Year38.8%36.3%-0.6%-2.0%11.5%9.5%
3 Year115.0%108.5%11.8%7.7%23.6%16.7%
5 Year316.6%298.0%9.9%3.7%35.5%22.9%

Price Volatility Vs. Market

How volatile is KEC International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KEC International undervalued compared to its fair value and its price relative to the market?

15.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532714 (₹342.7) is trading above our estimate of fair value (₹290.56)

Significantly Below Fair Value: 532714 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532714 is poor value based on its PE Ratio (15.5x) compared to the Construction industry average (10.8x).

PE vs Market: 532714 is poor value based on its PE Ratio (15.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 532714 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 532714 is overvalued based on its PB Ratio (3.4x) compared to the IN Construction industry average (0.6x).


Next Steps

Future Growth

How is KEC International forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532714's forecast earnings growth (16.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 532714's earnings (16.5% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: 532714's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532714's revenue (12.1% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 532714's revenue (12.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532714's Return on Equity is forecast to be high in 3 years time (21.4%)


Next Steps

Past Performance

How has KEC International performed over the past 5 years?

27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532714 has high quality earnings.

Growing Profit Margin: 532714's current net profit margins (4.7%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 532714's earnings have grown significantly by 27.2% per year over the past 5 years.

Accelerating Growth: 532714's earnings growth over the past year (15.5%) is below its 5-year average (27.2% per year).

Earnings vs Industry: 532714 earnings growth over the past year (15.5%) exceeded the Construction industry 4.8%.


Return on Equity

High ROE: Whilst 532714's Return on Equity (21.92%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KEC International's financial position?


Financial Position Analysis

Short Term Liabilities: 532714's short term assets (₹103.8B) exceed its short term liabilities (₹91.3B).

Long Term Liabilities: 532714's short term assets (₹103.8B) exceed its long term liabilities (₹3.9B).


Debt to Equity History and Analysis

Debt Level: 532714's debt to equity ratio (106.8%) is considered high.

Reducing Debt: 532714's debt to equity ratio has reduced from 195.4% to 106.8% over the past 5 years.

Debt Coverage: 532714's debt is well covered by operating cash flow (40.7%).

Interest Coverage: 532714's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: 532714 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532714's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

What is KEC International's current dividend yield, its reliability and sustainability?

0.99%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.6%industryaverage1.4%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: 532714's dividend (0.99%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532714's dividend (0.99%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: 532714's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532714's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.2%), 532714's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532714's dividends in 3 years are forecast to be thoroughly covered by earnings (14.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Vimal Kejriwal (58yo)

4.8yrs

Tenure

₹61,700,000

Compensation

Mr. Vimal Kejriwal, B.Com., F.C.A., F.C.S., D.T.M., serves as Director at Raychem RPG (P) Ltd. Mr. Kejriwal serves as a Member of Management Board, Chief Executive of Infrastructure Sector and President of ...


CEO Compensation Analysis

Compensation vs Market: Vimal's total compensation ($USD858.94K) is above average for companies of similar size in the Indian market ($USD634.25K).

Compensation vs Earnings: Vimal's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vimal Kejriwal
CEO, MD & Director4.8yrs₹61.70m0.00034% 296.4k
Rajeev Aggarwal
Chief Financial Officer5.4yrs₹31.70mno data
Amit Gupta
Company Secretary & Compliance Officer1.8yrs₹4.90mno data
Anand Kulkarni
Executive Director of Business Operations0yrsno datano data
Sayali Phatak
Head of Legal0yrsno datano data
Somraj Roy
Chief Human Resources Officer0yrsno datano data
Randeep Narang
President of International (Transmission & Distribution and Solar) & Cables0yrsno datano data
Gustavo Cedeno
Chief Executive Officer of SAE Towers4.5yrsno datano data
Neeraj Nanda
President of South Asia - Transmission & Distribution and Solar4.2yrsno datano data
Nagesh Veeturi
Chief Executive of Civil1.8yrsno datano data

4.3yrs

Average Tenure

57yo

Average Age

Experienced Management: 532714's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vimal Kejriwal
CEO, MD & Director4.8yrs₹61.70m0.00034% 296.4k
Sudhir Trehan
Non-Executive Independent Director7.3yrs₹1.60mno data
Ajit Vaswani
Lead Independent Director0yrs₹2.00mno data
Harsh Goenka
Chairman14.1yrs₹63.10m1.95% 1.7b
Vikram Gandhi
Additional Independent Director0.5yrsno datano data
Ramesh Chandak
Independent Director14.2yrs₹2.10mno data
M. Unnikrishnan
Additional Independent Director0.3yrsno datano data
Gulu Mirchandani
Independent Director14.1yrs₹1.50mno data
Dilip Piramal
Independent Director14.1yrs₹1.60mno data
Nirupama Rao
Independent Director5.3yrs₹1.40mno data

7.3yrs

Average Tenure

70yo

Average Age

Experienced Board: 532714's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KEC International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KEC International Limited
  • Ticker: 532714
  • Exchange: BSE
  • Founded: 1945
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹87.166b
  • Shares outstanding: 257.09m
  • Website: https://www.kecrpg.com

Number of Employees


Location

  • KEC International Limited
  • RPG House
  • 463, Dr. Annie Besant Road
  • Mumbai
  • Maharashtra
  • 400030
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532714BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2006
KECNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2006

Biography

KEC International Limited, together with its subsidiaries, primarily engages in the engineering, procurement, and construction (EPC) business. It designs, manufactures, tests, supplies, and erects transmission lines on turnkey basis; and undertakes EPC projects of high voltage electrical switching and distribution substations, distribution network, optical fiber networks, telecom towers, and HV/EHV cabling project works. The company also manufactures power cables, jelly filled telecom cables, and optical fiber cables; provides railways infrastructure EPC turnkey solutions, such as construction of bridges, buildings, platforms, workshop modernization, etc.; carries out track works, such as track laying and linking, preparation of ballast bed, and earthwork information; undertakes overhead electrification, traction substation, and general electrical works for railway electrification; and engages in interlocking works, and outdoor and indoor supply and installation works for signaling and telecommunication projects. In addition, it builds factories, warehouses, residential townships and buildings, commercial complexes, sewage and water treatment plants, and other civil infrastructure projects. Further, the company provides solar EPC services that include design and engineering, project execution, project management, bid management, and project feasibility analysis for solar photovoltaic power plants. It operates in 100 countries in Africa, the Americas, Central Asia, the Middle East, South Asia, and South East Asia. KEC International Limited was founded in 1945 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:55
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.