KEC International with a Buy recommendation and a Target Price of `73 (12 months).

Forwarding you the Company visit on KEC International with a Buy recommendation and a Target Price of `73 (12 months).
 
We met KEC International (KEC)’s management to get an update on its business. KEC has a geographically diversified business model which insulates itself from slowdown in any particular region. Further, the company has also ventured in new businesses of water, telecom and railway which have fared well and order inflows as well as revenues have been picking up at a measurable pace. Given the attractive valuations (stock is trading at 6.8x FY2014E EPS which is 48% discount to its 5 year average PE), we maintain Buy on the stock assigning a multiple of 8x to arrive at a target price of `73.
 
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KEC International

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