Midcap Stock From Power Sector To Buy For High Returns As Recommended By Axis Securities

Midcap Stock From Power Sector To Buy For High Returns As Recommended By Axis Securities
Axis Securities has assigned a "Buy" on KEC International ltd. with a target price of Rs 504/share. It claims a potential upside of up to 9% from its current level if purchased at the current market price. The stock has a market capitalisation of Rs 11,972.61 crore. Check below to know more:

Stock Performance and Outlook

The stock of KEC International last traded at Rs 465.70 apiece, up by 1% as compared to its previous close of Rs 461.10 apiece. The stock traded its 52 week low on 12 May 2022 at Rs 345.50 apiece, and 52 week high on 10 January 2023 at Rs 525.95 apiece, respectively.

It gave 1.44% positive return in 1 week. However, it has fallen 4.66% in 1 month and 3.38% in 3 months, respectively. It has given 15.72% in 1 year. It gave 108.55% in 3 years and 19.86% in 5 years, respectively.

Buy for a target price of Rs 428/share

Axis Securities said, "We believe that the worst of margin contraction is behind and EBITDA margins are to improve as the company has started executing new projects which are at current prices. We expect EBITDA margins to improve to 8-9% in FY24/FY25 from the current 5%."

It added, "We recommend a BUY on KEC International Limited with a Target Price of Rs.504 an upside of 10% from CMP of Rs.458 and Stop Loss Rs.428."

KEC International

KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has presence in the verticals of Power Transmission and Distribution, Railways, Civil, Urban Infrastructure, Solar, Smart Infrastructure, Oil & Gas Pipelines, and Cables. The Company is currently executing infrastructure projects in 30+ countries and has a footprint in 110+ countries (includes EPC, Supply of Towers and Cables). It is the flagship Company of the RPG Group.

At present the company's order book stood over Rs 30,000 Cr and total order inflow till date stands at 19,600 Cr, a robust growth of 30% YoY giving a revenue growth visibility for the next 2 years. With its proven execution prowess and increasing government's thrust on developing the infrastructure of the country, the company is well-poised to grow its revenue and profitability moving ahead.

Disclaimer - The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.