KEC International has given robust returns to investors in the last 5 years, tripling their wealth. The stock has risen as much as 205 percent in the last five years, up from around Rs 95 in December 2014 to Rs 290 currently.

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To put in perspective, an investment of Rs 1 lakh in 2014 would have tripled to Rs 3 lakh in 2019.

The stock hit its 52-week high of Rs 340.50 on July 4, 2019, and a 52-week low of Rs 229.95 on February 15, 2019. It has been flat in the last 1 year, down 0.02 percent and has added 2 percent in 2019.

The company's current market capitalisation is more than Rs 7,500 crore.

KEC International, the flagship company of the RPG Group, is a global infrastructure engineering, procurement and construction (EPC) major. It has a presence in the verticals of power transmission and distribution (T&D),cables, railways, and civil. The power T&D segment is the largest segment, which accounts for 80 percent of the revenue.

For Q2, the company reported a 42 percent increase in consolidated profit after tax to Rs 139 crore against Rs 98 crore in the corresponding quarter of the previous financial year. The company's revenue also increased by 17 percent to Rs 2,809 crore in Q2FY20 from Rs 2,408 crore in Q2FY19.

What brokerages say:

Domestic brokerage JM Financial expects a 46 percent upside in the stock in the next 12 months. In a report, it said that pick-up in pending project awards in the third quarter and strong order wins in metro civil works have improved the company's FY21-22 growth visibility. The company has year-to-date inflows worth Rs 7,000 crore and order book of Rs 18,000 crore, it added.

KEC has a strong overall order backlog of over Rs 18,000 crore which along with scalability in the non-T&D business and stable execution in T&D is expected to help the management achieve a revenue growth guidance of 15-20 percent for FY2020, said ShareKhan in another report.

Nomura has also initiated coverage on KEC International in the long term with a target price of Rs 388.

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First Published:Dec 16, 2019 12:47 PM IST