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KEC International Ltd Stock Analysis

Mid Cap
Evaluated by 3061 users | BSE: 532714 | NSE: KEC |
Engineering - Construction

KEC International Limited, headquartered in Mumbai, India, is the flagship company of the RPG Group. An Engineering, Procurement, and Construction (EPC) major, the company deliver projects in key infrastructure sectors such as Power Transmission &...

1. Right Stock
Very Good
2. Right Price
3. Right Time

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 majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 16.05%10.42%14.16%10.8%13.01%14.7%19.63%17.13%15.82%16.77%-
Value Creation Index 0.53-0.010.350.030.240.400.870.630.510.60-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,6045,5926,5596,5927,6907,5669,03710,11810,47111,85212,299
Y-o-Y Gr. Rt.-21.5%17.3%0.5%16.7%-1.6%19.4%12%3.5%13.2%-
Adjusted EPS (Rs.) 5.731.44.372.27.9412.4417.1814.8417.9224.5325.65
Y-o-Y Gr. Rt.--75.6%212.1%-49.7%260.9%56.7%38.1%-13.6%20.8%36.9%-
Book Value per Share (Rs.) 38.8737.9940.1543.2153.7764.479.2997.02110.39136.9140.94
Adjusted Net Profit 1473611256.6204320442381461631659
Net Op. Cash Flow (Rs. Cr.) 443-151-26.862.7-37.31,545774171120838-
Debt to Cash Flow from Ops 1.53-7.27-53.0424.6-68.740.951.729.2218.152.11-
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 11.1%9%9.5%13.2%
Adjusted EPS 17.5%25.3%12.6%36.9%
Book Value per Share 1520.62024
Share Price 22.9% 29.2% 16.8% 42.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 15.813.6511.185.2816.3821.0523.9116.8317.2819.8418.46
Operating Profit Margin (%) 8.145.786.956.759.8710.7611.049.6810.4210.9710.14
Net Profit Margin (%) 3.20.641.710.862.664.234.893.774.45.325.36
Debt to Equity 0.681.121.381.391.860.880.650.630.770.5-
Working Capital Days 267251252279286325304327354345-
Cash Conversion Cycle 30241615579587705037-
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Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.82%
Institutions 37.58%
Non-Institutions 10.60%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year's financial track record analysis by Moneyworks4me indicates that KEC International Ltd is a good quality company.

KEC International Ltd's earnings have grown by 25.3%, whereas share price has appreciated 29.2% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

KEC International Ltd share price has appreciated 23.1% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis and assessment of future prospects by Moneyworks4me indicates that KEC International Ltd is a good long term investment. However, you need to ensure you buy at a right price to earn good returns.

KEC International Limited, headquartered in Mumbai, India, is the flagship company of the RPG Group. An Engineering, Procurement, and Construction (EPC) major, the company deliver projects in key infrastructure sectors such as Power Transmission & Distribution, Railways, Civil, Urban Infrastructure, Solar, Smart Infrastructure, and Cables. Its robust and integrated capabilities span the entire spectrum of ‘concept to commissioning’. It has

KEC International Limited, headquartered in Mumbai, India, is the flagship company of the RPG Group. An Engineering, Procurement, and Construction (EPC) major, the company deliver projects in key infrastructure sectors such as Power Transmission & Distribution, Railways, Civil, Urban Infrastructure, Solar, Smart Infrastructure, and Cables. Its robust and integrated capabilities span the entire spectrum of ‘concept to commissioning’. It has successfully executed complex projects across some of the world’s most difficult terrains and conditions aided by robust project management and execution capabilities. It has unrivalled expertise in manufacturing and testing, with a footprint extending across India, Dubai, Brazil, and Mexico.

The company has prided itself for its unmatched expertise across EPC, backed by a strong, customer-centric approach, quest for world-class quality, and ‘safety-first’ attitude. Integrity in its actions and respect for people, environment and its stakeholders are the cornerstones of its corporate responsibility. Empowered by a mindset driven to outperform and excel, it builds infrastructure for the world of tomorrow.

Business area of the company

Power Transmission & Distribution: The company is a global leader in the Power Transmission & Distribution EPC space. This is the largest business vertical of the company. The company has capabilities to design, manufacture, test, supply and erect transmission lines on turnkey basis, along with end-to-end solutions for underground HT and EHV cabling works. The company also executes turnkey EPC projects that involve High Voltage Electrical Switching and Distribution Substations across the globe.

Cables: The company is one of the leading manufacturers of power and telecom cables in India. It has two state-of-the-art manufacturing facilities located in Vadodara (Gujarat) and Mysore (Karnataka). It pioneered the production of XLPE cables in India. It has a diverse clientele across industries including power, oil & gas, steel, engineering, electricity supply, etc. The company is also amongst the leading Indian exporters of cables. The company is well equipped with testing facilities as per various national and international specifications.

Railways: The company is an integrated player in the Railway EPC industry, providing complete turnkey solutions for all types of railway contracts. The company has integrated backwards to manufacture contact & catenary conductors, signalling cables as well as galvanised steel structures for railways.

Solar: In line with the government’s increased focus on Renewable Energy sector, the company has made a move to carve out its presence in the sector by providing Solar EPC services for large solar PV projects developed by private players and roof-top PV solutions for Industrial and Commercial consumer.

Civil business: The company’s Civil business focuses on the construction of factories, warehouses, residential buildings, railway stations, metros, and sewage & water treatment plants, and comprises of four verticals - A. Infrastructure & Heavy Civil (Metro & Water Projects), B. Industrial & Hydrocarbon (Factories), C. Residential & Public Spaces (Buildings, Commercial Spaces), D. Defence (Civil projects in Defence sector). It provides professional EPC services in an area dominated either by small unorganised players or by very few large companies.

Smart Infrastructure: RPG Smart Infra, a division of KEC International, helps Cities with implementation & commissioning of these technologies along with operating & maintaining them, and training the City administrators to manage the infrastructure. KEC brings in decades of experience in projects across utilities, railways, solar and civil infrastructure along with its strong financial fundamentals and an appetite to take on large scale projects.

Awards & Recognition

2008:

  • Corporate Leadership Award, 2008.
  • Amity Corporate Excellence Award, 2008.

2009:

  • Best CFO Award, 2009.

2010:

  • Best Employer Awards.

2011:

  • National HRD Network (NHRDN) Awards 2011.
  • CII Design Excellence Awards, 2011.
  • Green IT Enterprise Award 2011.

2012:

  • Certificate of Merit at India Manufacturing Excellence Awards, 2012.
  • Export Excellence Awards.

2013:

  • Best Employer Award, 2013 by Aon Hewitt.
  • KEC Jaipur tower manufacturing unit won the Best Employer Award 2012.
  • 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.

2014:

  • KEC International has won the following two prestigious awards from Power Grid Corporation of India (PGCIL).
  • KEC International Jabalpur unit won Outstanding Achiever for Export Award 2014.
  • Third time in a row KEC’s Jaipur tower manufacturing unit won the “Best Employer Award 2013” by Employer Association, Rajasthan.

2015:

  • For the third consecutive year, PGCIL appreciated KEC’s work by conferring three of its most coveted awards to KEC.
  • Dun & Bradstreet recognized KEC International as ‘The Leading Infrastructure Company in Power Sector’ at D&B’s Infra Awards 2015 held in Delhi in October 2015.
  • Best Employer Award 2014.

2016:

  • Awards for Quality & Excellence from National Grid of Saudi Arabia.
  • Outstanding Performance at the ZTE India Partners Meet 2016.
  • Industry Honour for Outstanding Contribution in Power EPC, at the 6th EPC World Awards.
  • KEC wins Best Performing Contractor 2016 Award.

2017:

  • Supply Chain Plants win India Manufacturing Excellence Award
  • KEC receives the ‘Special Trophy - Excellence in Engineering Process Outsourcing Services’ at EEPC India’s Western Regional Awards for 2015-16.
  • KEC wins Butibori Morarjee Rolling Trophy at CCQC.
  • Rising Star Solar PV EPC Company Award. 

2018:

  • Gold Award in Construction for Civil business at 17th Annual Greentech Safety Awards 2018.
  • Gold Award for Jaipur Manufacturing plant at the SEEM National Energy Management Awards (SNEMA) 2017.
  • Diamond Award for Vadodara Manufacturing plant at Quality Circle Forum of India.
  • Outstanding Performance in CSR by Employer Association of Rajasthan.
  • Greentech Safety Award for Power Transmission.
  • Best CSR Activity at Construction Times Awards 2018.
  • KEC plants win Gold & Silver at SNEMA Awards 2017.
  • Award for Maximum Capitalisation in Transmission Line Construction from PGCIL.

2019:

  • Company of The Year award at the 2019 Dun & Bradstreet Infra Awards.
  • Project of the Year award for 220 kV Srinagar-Leh Transmission System project at the 2019 Dun & Bradstreet Infra Awards.
  • Significant Contribution to Innovation in India at the 15th I-ACE Awards.
  • Best Executed Landmark Project Award at Nepal Infrastructure & Construction Excellence Awards 2019.
  • Excellence in Infrastructure Award at the Rail & Metro Award 2019.

Milestone

  • 1945: Established for manufacturing, enameling, trading for Hollowware.
  • 1950: First tower supply order for Bhakra Nangal Project, India.
  • 1959: First 220 kV turnkey transmission line project in India.
  • 1960: First export tower supply export order from New Zealand.
  • 1961: First Indian company to get a Railway Electrification order.
  • 1968: First international turnkey transmission project in Sudan.
  • 1982: Taken over by RPG Group.
  • 1999: First 765 kV transmission project.
  • 2007: RPG Transmission and NITEL merged. Telecom, Distribution SBU started.
  • 2009: Railway SBU started.
  • 2010: Acquired SAE towers in the Americas.
  • 2010: Acquired and merged RPG Cables.
  • 2010: World’s Highest capacity (1,200 kV) tower testing station started at Nagpur, India and tested first 1200 kV tower.
  • 2011: Forays into Water EPC Business.
  • 2012: Established a world-class greenfield facility at Vadodara, Gujarat for Manufacturing of high tension (HT) and extra high voltage (EHV) power cables.
  • 2015: First 765 kV GIS Substation in Thiruvalam, which is also a first-of-its-kind in South India.
  • 2017: KEC expands its business portfolio to include Smart Infrastructure with a focus on Smart Cities & Communication, Smart Mobility and Smart Utility.
  • 2020: KEC acquired a state-of-the-art automated transmission tower manufacturing facility in mainland Dubai, with a capacity of 50,000 tonnes per annum.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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