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 10-year financial track record.

Q.3 Is KEC International Ltd undervalued or overvalued?

KEC International Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

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

KEC International Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

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 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.3 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.4 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.5 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	1.03	0.99
ROE	7.06	7.06
ROCE	14.83	14.83
Cash Conversion Cycle	-74 days	-11 days

Q.6 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.7 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.8 Net Profit Margin of KEC International Ltd?

KEC International Ltd Net Profit Margin is 1.69% for FY-2025, is in line with 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

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

KEC International Ltd Debt-to-Equity ratio is 0.62, which is above with the industry average of 0.39, 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

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)

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 9.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	10.3	9.5
Gross Profit Growth	67.4	14.9
Operating Profit Growth	24.1	11.1
Net Profit Growth	118.9	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.03	0.68
ROE	7.06	8.34
ROCE	14.83	11.34
Cash Conversion Cycle (days)	-73.97	57

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 16.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.1%	8.1%	3.2%	-18.8%

Q.3 Valuation ratios of KEC International Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	45.08	63.60	21.62
Price to Book	2.96	3.58	1.75
Price to Sales	0.78	0.95	1.50
EV to EBITDA	16.5	18.78	11.53

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