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KEC International Ltd. Stock Analysis

Mid Cap
Evaluated by 2327 users | BSE: 532714 | NSE: KEC |
Engineering - Construction
KEC International Limited (KEC) was incorporated as Kamani Engineering Corporation in 1945 by Ramji M Kamani. KEC International, the flagship company in the transmission sector of the RPG Group, is a global leader in the power transmission engineering, procurement and construction (EPC)...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
KEC International Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 15.91%16.05%10.42%14.16%10.8%13.01%14.7%19.63%17.13%15.82%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,9654,6045,5926,5596,5927,6907,5669,03710,11810,471
Y-o-Y Gr. Rt.-16.1%21.5%17.3%0.5%16.7%-1.6%19.4%12%3.5%
Adjusted EPS (Rs.) 6.265.731.44.372.27.9412.4417.1814.8417.92
Y-o-Y Gr. Rt.--8.5%-75.6%212.1%-49.7%260.9%56.7%38.1%-13.6%20.8%
Book Value per Share (Rs.) 33.6538.8737.9940.1543.2153.7764.479.2997.02110.39
Adjusted Net Profit 1611473611256.6204320442381461
Net Op. Cash Flow (Rs. Cr.) 85.7443-151-26.862.7-37.31,545774171120
Debt to Cash Flow from Ops 10.461.53-7.27-53.0424.6-68.740.951.729.2218.15
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
KEC International Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.4%9.7%11.4%3.5%
Adjusted EPS 12.4%52.1%12.9%20.8%
Book Value per Share 14.120.619.713.8
Share Price 20.9% 17.9% 1.8% 15.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 19.7115.813.6511.185.2816.3821.0523.9116.8317.28
Operating Profit Margin (%) 10.958.145.786.956.759.8710.7611.049.6810.42
Net Profit Margin (%) 4.063.20.641.710.862.664.234.893.774.4
Debt to Equity 1.040.681.121.381.391.860.880.650.630.77
Working Capital Days 262267251252279286325304327354
Cash Conversion Cycle 62302416155795877050
Entity Percentage Holding
Promoters 51.66%
Institutions 36.57%
Non-Institutions 11.77%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of KEC International and arrived at the following conclusion:

Past 10 year's financial track record indicates that KEC International is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of KEC International's performance infers:

KEC International earnings have grown by 52.1%, whereas share price has appreciated 17.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of KEC International share prices over the last 10 years. Here is what we found out:

KEC International share price has appreciated 11.8% annually over the past ten years.

KEC International Limited (KEC) was incorporated as Kamani Engineering Corporation in 1945 by Ramji M Kamani. KEC International, the flagship company in the transmission sector of the RPG Group, is a global leader in the power transmission engineering, procurement and construction (EPC) business. With global operations spanning over 20 countries, the company is present in India, UAE, Saudi Arabia, Libya, Ghana, Algeria, Afghanistan, Nigeria, Kazakhstan, Mali, Tajikistan, South Africa,

KEC International Limited (KEC) was incorporated as Kamani Engineering Corporation in 1945 by Ramji M Kamani. KEC International, the flagship company in the transmission sector of the RPG Group, is a global leader in the power transmission engineering, procurement and construction (EPC) business. With global operations spanning over 20 countries, the company is present in India, UAE, Saudi Arabia, Libya, Ghana, Algeria, Afghanistan, Nigeria, Kazakhstan, Mali, Tajikistan, South Africa, Namibia, Mozambique, Ethiopia and Egypt among several other countries.

It is one of the largest Power Transmission EPC companies in the world. KEC has made an indelible mark on the world map by constantly and consistently re-engineering itself to retain its position of leadership in the areas of quality, technology, capacity and capability.

KEC is in the business of manufacture of transmission towers and erection and laying of power transmission lines on an EPC basis.

The company operates as a power transmission engineering, procurement, and construction company worldwide. KEC supplies towers and constructs transmission lines for the power transmission and distribution industry. Its operations include distribution and rural electrification, concrete spun pole manufacturing, and supply of telecom towers, as well as hotline stringing and providing services, such as satellite/GPRS surveys. KEC International also engages in the design, manufacture, supply, and construction of turnkey projects of power transmission lines of voltages up to 800 KV; and the execution of railway electrification projects, setting up sub-stations, and power distribution networks, optical fiber cable installations, turnkey telecom infrastructure services, and maintenance of power transmission lines.

KEC has three manufacturing facilities located at Butibori (22000 mt), Jaipur (36000 mt) and Jabalpur (55000 mt) with aggregate annual capacity of 1,13,000 mt. KEC meets the world's most stringent quality standards. Its plants are certified as per ISO 9001 and 14001 for Quality and Environmental Standards.KEC has gone from strength to strength successfully exporting towers to over 20 countries and widening its client base across the world. The company has an increasingly strong presence in the Middle East, the Pacific Rim countries and Africa.

KEC has helped transmit power to various countries that include Argentina, Brazil, Canada, Egypt, Ethiopia, Ghana, India, Indonesia, Iran, Iraq, Kenya, Kuwait, Lebanon, Malaysia, New Zealand, Nepal, Nigeria, Philippines, South Africa, Sri Lanka, Saudi Arabia, Sudan, Syria, Thailand, Tunisia, USA, UAE and Vietnam.

KEC test beds have been accepted and approved by Power utilities in India and abroad. Some of the key consultants who have witnessed the tests at KEC testing stations are:

  • Acres Consulting Engineers - Canada
  • Energo Project - Yugoslavia
  • Electricite de France - France
  • ESB International - Ireland
  • Ewbank Preece Ltd. - U.K.
  • Kennedy & Donkin Ltd. - U.K.
  • Lahmeyer International - Germany
  • Merz & McLELLAN - U.K.
  • Newjec - Japan

Awards/Achievements

  • KEC International received the Highest Exporter Trophy for the year 2000-2001 in Capital goods.
  • KEC International has won the EEPC India Western Regional ‘Top Exporter - Gold trophy’ award for highest exports in the ‘Merchant Exporters’ category for the year 2006-07.
  • In 2007  the company crossed the record level of Rs. 2000 crore in annual revenue marks a major milestone.
  • In December 2008 it added one more country to its already illustrious list of 41 countries where it has a footprint, by bagging a Rs 88 crore order from Barki Tojik, the national electricity company of Tajikistan.
  • In February 2008, KEC International received the Amity Corporate Excellence award at the International Business Summit and Research Conference - INBUSH
  • On January 2,2009 the company announced the successful completion of the important Kerawalapitiya-Kotugoda transmission line Project in Sri Lanka with cooperation from Colombo Electricity Board (CEB).
  • 2010
    Acquires SAE towers in the Americas.
    Acquired and merged RPG Cables.
    World’s Highest capacity (1,200kV) tower testing station started at Nagpur, India and tested first 1200 kV tower.
  • 2011
    Forays into Water EPC Business.
    National HRD Network (NHRDN) Awards 2011 
    CII Design Excellence Awards, 2011 
    Green IT Enterprise Award 2011
  • 2012
    Established a world-class greenfield facility at Vadodara, Gujarat for Manufacturing of high tension (HT) and extra high voltage (EHV) power cables.
    Certificate of Merit at India Manufacturing Excellence Awards, 2012
  • 2013
    Best Employer Award, 2013 by Aon Hewitt 
    Indo-American Corporate Excellence Award for Best Indian Company in the US in Manufacturing, 2013 
    BML Munjal Award for Excellence in Learning and Development, 2013 
    National Award for Innovative Talent Development Practices, 2013
    KEC International has won the following two prestigious awards from Power Grid Corporation of India Limited (PGCIL), A Government of India Enterprise for outstanding performance in the year 2013-14 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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