Check Before You Invest : KEC International Ltd

Q: Which industry/sub-sector does KEC International Ltd belong to?

KEC International Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q: Is KEC International Ltd a good quality company?

KEC International Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is KEC International Ltd undervalued or overvalued?

KEC International Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 30.28, Historic Median: 63.23. Price to Book, Current: 2.35, Historic Median: 3.58. Price to Sales, Current: 0.68, Historic Median: 0.95. EV to EBITDA, Current: 15.27, Historic Median: 18.74

Q: Is KEC International Ltd a good buy now?

KEC International Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of KEC International Ltd?

KEC International Ltd revenue growth is 10.3% for FY-2025, which is below its 5-year CAGR of 12.87%, indicating slower growth.

Q: Gross Profit margin of KEC International Ltd?

KEC International Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.9% for FY-2025, which is in line with its 5-year median of 2.9%, indicating stable margins.

Q: Operating Profit Margin of KEC International Ltd?

KEC International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.13% for FY-2025, which is in line with its 5-year median of 6.13% indicating stable margins.

Q: Net Profit Margin of KEC International Ltd?

KEC International Ltd Net Profit Margin is 1.69% for FY-2025, is in line with its 5-year median of 1.69%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 2.9, Historic Median: 2.9. Operating Profit Margin (%), Current: 6.13, Historic Median: 6.13. Net Profit Margin (%), Current: 1.69, Historic Median: 1.69

Q: Return on Asset of KEC International Ltd?

KEC International Ltd Return on Asset is 1.74%, which is in line with its 5-year historical median of 1.74%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of KEC International Ltd?

KEC International Ltd Return on capital employed is 14.83% for FY-2025, which is in line with its 5-year historical median of 14.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : KEC International Ltd

Snapshot

Q.1 Which industry/sub-sector does KEC International Ltd belong to?

KEC International Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is KEC International Ltd a good quality company?

KEC International Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is KEC International Ltd undervalued or overvalued?

KEC International Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	30.28	63.23
Price to Book	2.35	3.58
Price to Sales	0.68	0.95
EV to EBITDA	15.27	18.74

Q.4 Is KEC International Ltd a good buy now?

KEC International Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of KEC International Ltd?

KEC International Ltd revenue growth is 10.3% for FY-2025, which is below its 5-year CAGR of 12.87%, indicating slower growth.

Q.2 Gross Profit margin of KEC International Ltd?

KEC International Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.9% for FY-2025, which is in line with its 5-year median of 2.9%, indicating stable margins.

Q.3 Operating Profit Margin of KEC International Ltd?

KEC International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.13% for FY-2025, which is in line with its 5-year median of 6.13% indicating stable margins.

Q.4 Net Profit Margin of KEC International Ltd?

KEC International Ltd Net Profit Margin is 1.69% for FY-2025, is in line with its 5-year median of 1.69%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	2.9	2.9
Operating Profit Margin (%)	6.13	6.13
Net Profit Margin (%)	1.69	1.69

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of KEC International Ltd?

KEC International Ltd Return on Asset is 1.74%, which is in line with its 5-year historical median of 1.74%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of KEC International Ltd?

KEC International Ltd Return on capital employed is 14.83% for FY-2025, which is in line with its 5-year historical median of 14.83%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of KEC International Ltd?

KEC International Ltd Return on equity is 7.06% for FY-2025, which is in line with its 5-year historical median of 7.06%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of KEC International Ltd?

KEC International Ltd Cash conversion cycle is -74 days, below its 5-year historical median of -11 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.03	0.99
ROE (%)	7.06	7.06
ROCE (%)	14.83	14.83
Cash Conversion Cycle	-74 days	-11 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of KEC International Ltd?

KEC International Ltd Debt-to-Equity ratio is 0.62, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of KEC International Ltd?

KEC International Ltd Debt to cash flow from operations is 12.97, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of KEC International Ltd?

Q.1 Promoter shareholding and pledge status of KEC International Ltd?

Promoters hold 50.10% of the KEC International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does KEC International Ltd performance compare with that of its Peers?

Q.1 Revenue growth of KEC International Ltd vs industry peers?

KEC International Ltd revenue CAGR is 12.87%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	10.3	-
Gross Profit Growth (%)	67.4	17
Operating Profit Growth (%)	24.1	14
Net Profit Growth (%)	118.9	20.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.03	0.63
ROE (%)	7.06	6.16
ROCE (%)	14.83	10.5
Cash Conversion Cycle (days)	-73.97	52

Valuation & price assessment

Q.1 Stock return of KEC International Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 14.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	14.3%	3.7%	-4.2%	-40.1%

Q.2 Valuation ratios of KEC International Ltd vs historical?

The current P/E ratio of 30.28 is lower than its historical median of 63.23, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	30.28	63.23	21.52
Price to Book	2.35	3.58	1.74
Price to Sales	0.68	0.95	1.51
EV to EBITDA	15.27	18.74	11.49

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Check Before You Invest : KEC International Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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