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KEC International Ltd. (IN:KEC)
:KEC
India Market

KEC International Ltd. (KEC) AI Stock Analysis

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IN:KEC

KEC International Ltd.

(KEC)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
₹579.00
▼(-22.48% Downside)
Action:ReiteratedDate:11/08/25
KEC International Ltd. demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor supporting the stock score. However, technical analysis indicates bearish momentum and oversold conditions, suggesting potential short-term weakness. Valuation metrics further imply that the stock may be overvalued, limiting its attractiveness at current prices.
Positive Factors
Revenue & EBIT improvement
Sustained revenue growth and a materially higher EBIT margin show KEC's ability to win projects and improve execution. Higher operating profitability is a durable indicator of competitive project delivery and supports reinvestment and debt servicing over the medium term.
Positive cash generation
Consistent operating cash flow and positive free cash flow demonstrate the company converts project earnings into cash. This provides lasting capacity to fund working capital, capex and reduce reliance on external funding, strengthening medium-term financial resilience.
Moderate leverage & improved ROE
A balanced capital structure with moderate leverage plus rising ROE indicates effective use of equity and manageable debt levels. This durable financial posture supports competitive bidding and execution in capital-intensive EPC projects without overextending financial flexibility.
Negative Factors
Thin net margins
A low net margin relative to gross and EBIT margins highlights residual pressure from interest, taxes, overheads or non-recurring costs. Persistently thin net profitability reduces retained earnings and limits the firm's ability to build buffers against project overruns or cyclical downturns.
Cash conversion gap
Material gap between reported earnings and cash generation points to working-capital intensity in project execution. Over time, inefficient cash conversion can strain liquidity, increase reliance on debt or supplier finance, and constrain growth in an order-driven EPC business.
Commodity & execution exposure
KEC's margins and timelines are structurally exposed to volatile commodity prices and project delivery risk. These industry-level factors can cause prolonged margin compression or working-capital swings if steel or logistics costs rise or projects face delays, impacting durable profits.

KEC International Ltd. (KEC) vs. iShares MSCI India ETF (INDA)

KEC International Ltd. Business Overview & Revenue Model

Company DescriptionKEC International Limited, together with its subsidiaries, engages in the engineering, procurement, and construction (EPC) business. It designs, manufactures, tests, supplies, and erects transmission lines on turnkey basis; and undertakes EPC projects of high voltage electrical switching and distribution substations, distribution network, optical fiber networks, telecom towers, and HV and EHV cabling project works. The company also manufactures power cables, jelly filled telecom cables, and optical fiber cables; provides railways infrastructure EPC turnkey solutions, such as construction of road over bridges, bridges, tunnels, stations, and platforms; carries out track works, such as track laying, and earthwork information; undertakes overhead electrification and traction substation works; and engages in interlocking works, and outdoor and indoor supply and installation works for signaling and telecommunication projects. In addition, it builds factories, warehouses, residential townships and buildings, commercial buildings, sewage and water treatment plants, and other civil infrastructure projects, as well as engages in the smart infrastructure activities. Further, the company provides solar EPC services that include design and engineering, project execution, project management, bid management, and project feasibility analysis for solar photovoltaic power plants. It operates in 110 countries in India, Brazil, Mexico, the United States, and internationally. KEC International Limited was founded in 1945 and is headquartered in Mumbai, India.
How the Company Makes MoneyKEC generates revenue primarily through its EPC contracts, where it undertakes large-scale projects for government and private sector clients. The company's key revenue streams include power transmission and distribution projects, railway electrification and track laying, and civil construction contracts. In addition to project execution, KEC also earns money through the supply of equipment and materials necessary for these projects. Significant partnerships with various government entities and private corporations further bolster its revenue, enabling KEC to secure large contracts and maintain a steady flow of income. The company's diversified portfolio and its presence in international markets also contribute to its earnings, allowing it to tap into various growth opportunities.

KEC International Ltd. Financial Statement Overview

Summary
KEC International Ltd. shows robust financial health with strong revenue growth and improved profitability margins. The balance sheet remains stable, supported by moderate leverage. Cash flow generation is positive, though there is scope for improving cash flow efficiency. Overall, the company is well-positioned within the Engineering & Construction industry, but should focus on optimizing operational cash flow to sustain growth.
Income Statement
85
Very Positive
KEC International Ltd. demonstrates strong revenue growth with a 11.46% increase from 2024 to 2025. The company maintains a solid gross profit margin of 22.6% and a net profit margin of 2.61% for 2025. The EBIT margin shows a significant improvement to 15.54%, indicating enhanced operational efficiency. However, the EBITDA margin decreased slightly to 6.88%, suggesting room for improvement in managing expenses.
Balance Sheet
78
Positive
The balance sheet reflects a stable equity base with a healthy equity ratio of 24.1%. The debt-to-equity ratio stands at 0.74, reflecting moderate leverage. Return on equity improved to 10.67%, showcasing effective use of equity capital. However, the increase in total debt warrants monitoring to ensure it remains at manageable levels.
Cash Flow
72
Positive
Operating cash flow increased to 4.19 billion, supporting a positive free cash flow of 2.37 billion for 2025. The free cash flow to net income ratio of 0.41 indicates efficient cash conversion. Nonetheless, the operating cash flow to net income ratio of 0.73 suggests that cash flow generation is not fully aligned with net income, which may impact liquidity.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue223.58B218.47B199.14B172.82B137.42B131.14B
Gross Profit45.59B49.36B46.06B39.29B17.50B21.37B
EBITDA15.96B15.04B12.62B9.78B9.70B12.69B
Net Income6.08B5.71B3.47B1.76B3.32B5.53B
Balance Sheet
Total Assets0.00221.80B190.31B172.79B163.39B140.48B
Cash, Cash Equivalents and Short-Term Investments5.73B6.56B2.06B2.87B2.77B2.03B
Total Debt0.0039.57B39.85B33.83B30.65B20.66B
Total Liabilities-53.47B168.32B149.36B135.07B127.19B106.88B
Stockholders Equity53.47B53.47B40.96B37.71B36.20B33.60B
Cash Flow
Free Cash Flow0.002.37B737.60M4.28B-4.27B6.64B
Operating Cash Flow0.004.19B3.11B6.07B-2.84B8.45B
Investing Cash Flow0.00-678.70M-2.23B-1.35B-2.05B-1.27B
Financing Cash Flow0.00-321.20M-1.45B-4.01B4.96B-6.64B

KEC International Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price746.90
Price Trends
50DMA
652.81
Negative
100DMA
708.54
Negative
200DMA
783.76
Negative
Market Momentum
MACD
-24.77
Positive
RSI
29.77
Positive
STOCH
39.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KEC, the sentiment is Negative. The current price of 746.9 is above the 20-day moving average (MA) of 595.07, above the 50-day MA of 652.81, and below the 200-day MA of 783.76, indicating a bearish trend. The MACD of -24.77 indicates Positive momentum. The RSI at 29.77 is Positive, neither overbought nor oversold. The STOCH value of 39.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KEC.

KEC International Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹125.94B41.511.56%-13.85%-34.81%
64
Neutral
₹96.99B28.603.24%-5.23%3.21%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
₹64.25B19.270.05%28.54%19.19%
60
Neutral
₹146.78B38.530.74%12.21%56.50%
59
Neutral
₹118.89B25.720.43%4.16%-0.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:KEC
KEC International Ltd.
551.40
-160.85
-22.58%
IN:AFCONS
Afcons Infrastructure Limited
284.70
-150.42
-34.57%
IN:IRCON
IRCON International Ltd.
133.90
-13.27
-9.02%
IN:KIRLOSBROS
Kirloskar Brothers Ltd.
1,497.20
-149.43
-9.07%
IN:POWERMECH
Power Mech Projects Ltd.
2,032.20
77.70
3.98%
IN:RITES
RITES Ltd.
201.80
-4.42
-2.14%

KEC International Ltd. Corporate Events

KEC International Secures Rs. 1,150 Crore Orders in India
Dec 12, 2025

KEC International Ltd. has secured new orders worth Rs. 1,150 crores in its Transmission & Distribution (T&D) and Civil businesses in India. The T&D business received its largest-ever order for a 765 kV transmission line and a 765/400 kV AIS substation, while the Civil business secured additional work for a 150 MW thermal power plant. These orders significantly boost KEC’s order book, particularly from private sector clients, and reinforce its confidence in meeting annual targets.

KEC International Announces Resignation of Senior Executive in Renewables
Dec 12, 2025

KEC International Ltd. announced the resignation of Mr. Manjit Singh Sethi, Executive Director of Renewables, due to personal reasons, effective December 12, 2025. This change in senior management may impact the company’s operations in the renewables sector, a critical area for its growth strategy, potentially affecting stakeholders and market positioning.

KEC International Ltd. Receives ESG Rating of 65
Dec 11, 2025

KEC International Ltd. has been assigned an ESG rating of ’65’ by CFC Finlease Private Limited, as per the disclosure under Regulation 30 of the SEBI Regulations, 2015. This rating reflects the company’s commitment to environmental, social, and governance standards, potentially impacting its reputation and attractiveness to investors focused on sustainability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 08, 2025