Smallcap Stock: With a market capitalization of above ₹12,300 Crore, KEC International [NSE: KEC], a smallcap company, gave a return of 12.37% on Friday, on an intraday basis. Prabhudas Lilladher, one of India’s premier stock brokers, recently gave a BUY call on the stock.
The stock was in the bear’s claw since Monday as the share price plummeted from ₹530.00/- to ₹476.15/- within four trading days. But the shares of KEC International saw a momentum reversal on Friday as the share price of KEC International rose to a day’s high of ₹547.00/- and closed the day 12.37% higher. Below are the details.
About KEC International
KEC International is a billion-dollar EPC (Engineering, Procurement, and Construction) company and is the flagship company of RPG Group. The company executes projects in sectors such as Power Transmission & Distribution, Railways, Solar, etc.
The company is also among one of the leading manufacturers of power and telecom cables in India. KEC International has a worldwide presence, having completed more than 70+ EPC projects around the globe.
KEC International recently bagged a Transmission and Distribution order worth ₹1,213 Crore.
Stock Price Of KEC International
On Monday, 15th May 2023, the stock price of KEC International opened the trading day at ₹530.00/-. The stock’s bearish momentum continued till Thursday as shares of KEC International closed at ₹480.30/- on 18th May 2023, diving 9.37% within four trading days.
The tide changed on Friday as the share price of KEC International saw a trend reversal.
On Friday, 19th May 2023, shares of KEC International opened the trading day at ₹484.00/- and rose to an intraday high of ₹547.00/-. And the stock closed the day and the week at ₹539.70/-, up 12.37% against the previous day’s close.
On the weekly chart, KEC International was down 0.58%, while the company’s shares gave a decent return of 10.72% on the monthly chart. And on the yearly chart, the stock of KEC International gave an above-average return of 41.32%.
Intraday Trade On KEC International
Shares of KEC International gave 5x Return on an intraday basis on Friday’s opening session.
An intraday trader with a trading capital of ₹1 Lakh, using 5x leverage, would have received 1,033 shares of KEC International at ₹484.00/- a piece.
Selling the entire position of 1,033 shares of KEC International at the day’s high of ₹547.00/- would have fetched a profit of ₹5,65,051.00/-.
And if the trader sold the position at the day’s closing price of ₹539.70/-, it would have fetched a profit of ₹5,57,510.10/-.
Financial Result Of KEC International
On 3rd May 2023, KEC International reported its Q4FY23 financial result.
The revenue from operation stood at ₹5,525.01 Crore for the quarter ended in March 2023. Up 29% on a Y-o-Y basis against ₹4,274.78 Crore for Q4 of FY22. On a sequential basis, the revenue from operation was up 26.29% against ₹4,374.62 Crore for the quarter ended in December 2022.
The company’s EBITDA for the March 2023 quarter stood at ₹283 Crore, up 12.30% on a Y-o-Y basis against ₹252 Crore for Q4 of FY22. On a sequential basis, the EBITDA of KEC International was up by 41.50% against ₹200 Crore for the quarter ended in December 2022.
The company’s Net Profit stood at ₹72.17 Crore for the Q4 of 2023, down 35.58% on a Y-o-Y basis against ₹112.04 Crore for the March quarter of 2022. Though, on a sequential basis, Net Profits were up.
On a Q-o-Q basis, the Net Profit of KEC International was up by 310.05% against ₹17.60 Crore for the quarter that ended in December of 2022.
KEC International Dividend News
The board of directors of KEC International recommended a dividend of 150% of the equity shares’ face value, which amounts to Rs. 3.00/- per share.
The company declared a 200% dividend in the previous year, which amounted to Rs. 4.00/- per share.
Should You Invest In KEC International?
According to the latest stock research report from Prabhudas Lilladher, investors can buy shares of KEC International for a target price of ₹559.00/- per share. As of now, the current market price of KEC International’s shares is lower than the target price set by Prabhudas Lilladher.
The broker has a positive view of the company’s future as it states – “We remain positive on KEC for long term given its 1) strong OB, 2) healthy execution momentum, 3) strong T&D outlook and 4) revenue visibility from non-T&D segments like Civil, Railways, Oil & Gas etc.”
Earlier, Prabhudas Lilladher had a target price of ₹505.00/- for the stock of KEC International, which they have now revised to ₹559.00/-.
Commenting on the valuation of KEC International’s shares, the report said – “The stock is trading at PE of 24.6x/12x FY24/25E. Maintain ‘Accumulate’ rating with TP of Rs559 (Rs505 earlier) valuing it at PE of 13x FY25E EPS (vs 12.5x earlier).”
That was it!
If this article has provided any value to you, please Upvote us using the upvote button below.
And kindly share this article with your friends and family.
And also – Sharing is Caring, and it is just a click away! 🥰
As usual, in the end, we will say –
Good Luck and Happy Investing. 😊
Disclaimer: The views, investment ideas, trading ideas, presumptions, and calculations expressed on Moneypremier.net are not of the website or its management. The author of this article or the website is not responsible for any kind of loss arising from decisions made by the user based on this article. This article is for Educational Purposes only.
Moneypremier.net advises users to check with certified experts before making any financial decisions.
Ownership Disclosure: People associated with Money Premier (https://moneypremier.net/) do not have stakes in the stock/s or share/s discussed in the above article.