KEC International Limited, a key subsidiary of the RPG Group, is a leading Indian multinational corporation specializing in Engineering, Procurement, and Construction (EPC) services across diverse infrastructure sectors, including power transmission, distribution, railways, and more. As India’s second-largest manufacturer of electric power transmission towers, KEC enjoys a formidable global presence in the EPC industry. Under Chairman Harsh Goenka’s visionary leadership, the company has demonstrated robust financial performance, reflecting its resilience and growth potential. Investors can capitalize on KEC International’s extensive experience and varied project portfolio to access promising opportunities within the infrastructure and power sectors.
ABOUT KEC INTERNATIONAL
Founded by Ramji H. Kamani on 7th May 1945 as Kamani Engineering Corporation, KEC International Limited, headquartered in Worli, Mumbai, India, has since evolved into a global leader in the field of Engineering, Procurement, and Construction (EPC). Mr. Kamani’s entrepreneurial spirit and engineering acumen set the company on its path, which has grown to become a pivotal part of the RPG Group, a diversified conglomerate with interests spanning infrastructure, tires, information technology, pharmaceuticals, energy, and plantations. Under the leadership of Chairman Harsh Goenka and with a dedicated and dynamic team, KEC International plays a vital role in critical sectors such as power transmission, distribution, railways, and more. Its impressive global footprint and unwavering commitment to quality and innovation have solidified its position as a major player in the EPC industry, carrying forward the legacy of its founder.
KEC INTERNATIONAL Q3 FY24 FINANCIAL HIGHLIGHTS
- Consolidated Net Profit: Rs 97 crore, up 5.5 times YoY.
- Revenue Growth: 14.4% YoY, reaching Rs 5,006.7 crore.
- Inventory Impact: Positive change of Rs 55.67 crore in finished goods, contributing to profit.
- Operational Strength: Achieved highest-ever revenue and order intake in fiscal 2023.
- EBITDA Margins: Improved sequentially for the last two quarters, rising to 6.2% in Q3 FY24.
- Outlook and Future Prospects: Strong demand anticipated due to increased government spending on infrastructure; Focus on core strengths of T&D, railways, civil, and cables.
- Order Book: Robust at Rs 38,000 crore; Won orders worth Rs 13,000 crore in 2023-24.
- Global Presence: Operating in over 45 countries across continents.
- Earnings Visibility: Positive outlook for the next two years, supported by strong orders, improving margins, and effective control over working capital
Below are the trading platforms that you can use to purchase KEC International shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
| When | Maximum Price | Minimum Price |
| May 2024 | 799.20 | 694.96 |
| June 2024 | 827.97 | 719.97 |
| July 2024 | 819.69 | 712.78 |
| August 2024 | 852.48 | 741.29 |
| September 2024 | 886.58 | 770.94 |
| October 2024 | 869.19 | 755.82 |
| November 2024 | 895.27 | 778.50 |
| December 2024 | 917.65 | 797.96 |
In 2024, KEC International’s share price has displayed a notable range of movement, with projected highs and lows over the year. The share price is expected to fluctuate between a minimum of ₹694.96 in May and a maximum of ₹917.65 in December.
The current market capitalization stands at ₹19,032 crore, with the stock price at ₹740 as of May 7th. The stock’s high and low for the year are ₹839 and ₹444, respectively, and it carries a P/E ratio of 71.2 with a book value of ₹150.
| When | Maximum Price | Minimum Price |
| January 2025 | 936.01 | 720.00 |
| February 2025 | 960.01 | 738.47 |
| March 2025 | 997.45 | 767.27 |
| April 2025 | 977.89 | 752.22 |
| May 2025 | 949.41 | 730.31 |
| June 2025 | 992.13 | 763.18 |
| July 2025 | 972.68 | 748.21 |
| August 2025 | 1,002.76 | 771.35 |
| September 2025 | 1,037.85 | 798.35 |
| October 2025 | 1,064.84 | 819.11 |
| November 2025 | 1,091.46 | 839.58 |
| December 2025 | 1,118.75 | 860.57 |
In 2025, KEC International’s share price is projected to see a steady upward trend, reaching a maximum target of ₹1,118.75 in December and a minimum of ₹720.00 in January.
| When | Maximum Price | Minimum Price |
| January 2026 | 1,152.31 | 886.39 |
| February 2026 | 1,181.85 | 909.12 |
| March 2026 | 1,227.95 | 944.57 |
| April 2026 | 1,203.87 | 926.05 |
| May 2026 | 1,168.81 | 899.08 |
| June 2026 | 1,221.40 | 939.54 |
| July 2026 | 1,197.45 | 921.12 |
| August 2026 | 1,234.49 | 949.61 |
| September 2026 | 1,277.69 | 982.84 |
| October 2026 | 1,310.91 | 1,008.40 |
| November 2026 | 1,343.69 | 1,033.61 |
| December 2026 | 1,377.28 | 1,059.45 |
In 2026, KEC International’s share price is anticipated to show a consistent upward trajectory, with projected highs reaching ₹1,377.28 in December and lows ranging from ₹886.39 in January to ₹1,059.45 in December.
| When | Maximum Price | Minimum Price |
| January 2027 | 1,404.83 | 1,080.63 |
| February 2027 | 1,440.85 | 1,108.34 |
| March 2027 | 1,497.04 | 1,151.57 |
| April 2027 | 1,467.69 | 1,128.99 |
| May 2027 | 1,424.94 | 1,096.11 |
| June 2027 | 1,489.06 | 1,145.43 |
| July 2027 | 1,459.86 | 1,122.97 |
| August 2027 | 1,505.01 | 1,157.70 |
| September 2027 | 1,557.69 | 1,198.22 |
| October 2027 | 1,598.19 | 1,229.38 |
| November 2027 | 1,638.14 | 1,260.11 |
| December 2027 | 1,679.10 | 1,291.61 |
| When | Maximum Price | Minimum Price |
| January 2028 | 1,712.68 | 1,317.44 |
| February 2028 | 1,756.59 | 1,351.23 |
| March 2028 | 1,825.10 | 1,403.92 |
| April 2028 | 1,789.31 | 1,376.40 |
| May 2028 | 1,737.20 | 1,336.31 |
| June 2028 | 1,815.37 | 1,396.44 |
| July 2028 | 1,779.78 | 1,369.06 |
| August 2028 | 1,834.82 | 1,411.40 |
| September 2028 | 1,899.04 | 1,460.80 |
| October 2028 | 1,948.42 | 1,498.78 |
| November 2028 | 1,997.13 | 1,536.25 |
| December 2028 | 2,047.05 | 1,574.66 |
SHARE PRICE TARGET 2029
| When | Maximum Price | Minimum Price |
| January 2029 | 2,087.99 | 1,606.15 |
| February 2029 | 2,141.53 | 1,647.33 |
| March 2029 | 2,225.05 | 1,711.58 |
| April 2029 | 2,181.42 | 1,678.02 |
| May 2029 | 2,117.89 | 1,629.14 |
| June 2029 | 2,213.19 | 1,702.46 |
| July 2029 | 2,169.80 | 1,669.07 |
| August 2029 | 2,236.90 | 1,720.70 |
| September 2029 | 2,315.20 | 1,780.92 |
| October 2029 | 2,375.39 | 1,827.22 |
| November 2029 | 2,434.78 | 1,872.90 |
| December 2029 | 2,495.64 | 1,919.73 |
SHARE PRICE TARGET 2030
| When | Maximum Price | Minimum Price |
| January 2030 | 2,545.56 | 1,958.12 |
| February 2030 | 2,610.83 | 2,008.33 |
| March 2030 | 2,712.65 | 2,086.65 |
| April 2030 | 2,659.46 | 2,045.74 |
| May 2030 | 2,582.00 | 1,986.15 |
| June 2030 | 2,698.19 | 2,075.53 |
| July 2030 | 2,645.29 | 2,034.84 |
| August 2030 | 2,727.10 | 2,097.77 |
| September 2030 | 2,822.55 | 2,171.19 |
| October 2030 | 2,895.93 | 2,227.64 |
| November 2030 | 2,968.33 | 2,283.33 |
| December 2030 | 3,042.54 | 2,340.42 |
FINANCIAL CONDITION OF KEC INTERNATIONAL: LAST 5 YEARS
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 11,001 | 11,965 | 13,114 | 13,742 | 17,282 |
| Expenses (Rs. Crores) | 9,764 | 10,635 | 11,874 | 12,742 | 16,334 |
| Operating Profit (Rs. Crores) | 1,237 | 1,330 | 1,240 | 1,001 | 948 |
| OPM % | 11% | 11% | 9% | 7% | 5% |
| Other Income (Rs. Crores) | 31 | 11 | 29 | -31 | 30 |
| Interest (Rs. Crores) | 398 | 403 | 360 | 413 | 656 |
| Depreciation (Rs. Crores) | 117 | 147 | 153 | 158 | 161 |
| Profit before Tax (Rs. Crores) | 753 | 790 | 756 | 399 | 161 |
| Tax % | 34% | 28% | 27% | 17% | -9% |
| Net Profit (Rs. Crores) | 496 | 566 | 553 | 332 | 176 |
| EPS (Rs.) | 19.28 | 22.00 | 21.50 | 12.92 | 6.85 |
| Dividend Payout % | 14% | 15% | 19% | 31% | 44% |
Over the past five years, KEC International exhibited significant shifts in its financial performance. Sales increased notably from Rs. 11,001 Crores in March 2019 to Rs. 17,282 Crores in March 2023, but rising expenses eroded profit margins. Operating profit as a percentage of sales (OPM %) declined from 11% to 5% during this period. Despite challenges, the company generated some income from non-operating activities.
Interest costs and depreciation remained stable, while profit before tax fluctuated. The tax rate dropped from 34% in 2019 to -9% in 2023, warranting investigation.
Net profit followed a downward trajectory, decreasing from Rs. 496 Crores in 2019 to Rs. 176 Crores in 2023. Earnings per share (EPS) also declined from Rs. 19.28 to Rs. 6.85. The rising dividend payout percentage, reaching 44% in 2023, showcases the company’s commitment to shareholders amid challenging financial conditions.
To summarize, KEC International has navigated a complex financial landscape over the last five years, marked by sales growth, escalating expenses, dwindling profit margins, and notable fluctuations in tax rates. The company’s adept handling of these challenges while upholding its dividend commitments underscores its unwavering commitment to its shareholders.
FAQs
WHAT IS THE CURRENT SHARE PRICE OF KEC INTERNATIONAL
As of May 7th, 2024, the share price of KEC International is around INR 740.
WHAT IS THE EXPECTED SHARE PRICE TARGET OF KEC INTERNATIONAL
According to diverse market analyses and expert assessments, KEC International’s anticipated share price target for 2024 is approximately INR 917.65. This valuation represents the consensus view among market experts and analysts.
As per our analysis, KEC International in 2025 is expected to trade between ₹720.00 and ₹1,118.75.
As per our analysis, KEC International’s share price target for 2030 would be somewhere between ₹1,958.12 and ₹3,042.54.
IS KEC INTERNATIONAL A GOOD STOCK TO BUY?
KEC International has a strong financial position, a well-diversified business model, and a proven track record of growth. Plus, the current P/E ratio has been on the lower end. Thus, it can be a good stock to buy for long-term investors.
Investing in KEC International shares involves typical investment risks, including exposure to market volatility, potential impacts of regulatory changes, and susceptibility to economic downturns. These factors can affect the performance and value of the shares.
WHAT ARE THE GROWTH PROSPECTS OF KEC INTERNATIONAL?
KEC International has a strong market position, a robust business strategy, and a diverse product portfolio, which can help the company sustain its growth in the future.
Over the past five years, KEC International shares have shown a steady growth rate, with a compound profit growth rate (CAGR) of around 19%.
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CONCLUSION: SHOULD YOU INVEST IN KEC INTERNATIONAL IN APRIL 2024?
In conclusion, while KEC International exhibits growth potential, it also faces certain financial challenges such as declining profit margins, low-interest coverage, and fluctuations in the tax rate. The company’s healthy dividend payout is a positive factor and share price projections suggest potential growth.
However, the current Price-to-Earnings (P/E) ratio is 71.2
Given these factors, it is advisable for investors to carefully evaluate their risk tolerance and conduct thorough research before making an investment decision in KEC International in May 2024. This decision should consider the company’s ability to address its financial challenges and the overall market conditions. Consulting with a financial advisor is recommended to make an informed investment choice.
What did we learn?
- 1 ABOUT KEC INTERNATIONAL
- 2 KEC INTERNATIONAL Q3 FY24 FINANCIAL HIGHLIGHTS
- 3 HOW TO PURCHASE KEC INTERNATIONAL SHARES?
- 4 KEC INTERNATIONAL SHARE PRICE TARGET: 2024 – 2030
- 4.1 KEC INTERNATIONAL SHARE PRICE TARGET 2024
- 4.2 KEC INTERNATIONAL SHARE PRICE TARGET 2025
- 4.3 KEC INTERNATIONAL SHARE PRICE TARGET 2026
- 4.4 KEC INTERNATIONAL SHARE PRICE TARGET 2027
- 4.5 KEC INTERNATIONAL SHARE PRICE TARGET 2028
- 4.6 KEC INTERNATIONAL SHARE PRICE TARGET 2029
- 4.7 KEC INTERNATIONAL SHARE PRICE TARGET 2030
- 5 FINANCIAL CONDITION OF KEC INTERNATIONAL: LAST 5 YEARS
- 6 FAQs
- 6.1 WHAT IS THE CURRENT SHARE PRICE OF KEC INTERNATIONAL?
- 6.2 WHAT IS THE EXPECTED SHARE PRICE TARGET OF KEC INTERNATIONAL BY 2024?
- 6.3 WHAT IS KEC INTERNATIONAL’S SHARE PRICE TARGET FOR 2025?
- 6.4 WHAT IS KEC INTERNATIONAL’S SHARE PRICE TARGET FOR 2030?
- 6.5 IS KEC INTERNATIONAL A GOOD STOCK TO BUY?
- 6.6 WHAT ARE THE RISKS ASSOCIATED WITH INVESTING IN KEC INTERNATIONAL SHARES?
- 6.7 WHAT ARE THE GROWTH PROSPECTS OF KEC INTERNATIONAL?
- 6.8 WHAT IS THE HISTORICAL PERFORMANCE OF KEC INTERNATIONAL SHARES?
- 7 ALSO READ:
- 8 CONCLUSION: SHOULD YOU INVEST IN KEC INTERNATIONAL IN APRIL 2024?
