KEC International Ltd. (KEC) AI Stock Analysis

• Market Cap: ₹146.78B
• Dividend Yield: 0.74%
• Average Volume (3M): 87.24K
• Price to Earnings (P/E): 38.5
• Beta (1Y): 1.99
• Revenue Growth: 12.21%
• EPS Growth: 56.50%
• Country: IN
• Employees: 6,450
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 6.60
• Shares Outstanding: 266,200,000
• 10 Day Avg. Volume: 38,375
• 30 Day Avg. Volume: 87,240
• PEG Ratio: 0.59
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 87.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹872.50
• Price Target Upside: 16.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 28.56
• Revenue Forecast (FY): ₹249.10B

• Rating: 60 Neutral
• Price Target: ₹579.00 ▼(-22.48% Downside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 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. Business Overview & Revenue Model

Company Description

KEC 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 Money

KEC 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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	223.58B	218.47B	199.14B	172.82B	137.42B	131.14B
Gross Profit	45.59B	49.36B	46.06B	39.29B	17.50B	21.37B
EBITDA	15.96B	15.04B	12.62B	9.78B	9.70B	12.69B
Net Income	6.08B	5.71B	3.47B	1.76B	3.32B	5.53B
Balance Sheet
Total Assets	0.00	221.80B	190.31B	172.79B	163.39B	140.48B
Cash, Cash Equivalents and Short-Term Investments	5.73B	6.56B	2.06B	2.87B	2.77B	2.03B
Total Debt	0.00	39.57B	39.85B	33.83B	30.65B	20.66B
Total Liabilities	-53.47B	168.32B	149.36B	135.07B	127.19B	106.88B
Stockholders Equity	53.47B	53.47B	40.96B	37.71B	36.20B	33.60B
Cash Flow
Free Cash Flow	0.00	2.37B	737.60M	4.28B	-4.27B	6.64B
Operating Cash Flow	0.00	4.19B	3.11B	6.07B	-2.84B	8.45B
Investing Cash Flow	0.00	-678.70M	-2.23B	-1.35B	-2.05B	-1.27B
Financing Cash Flow	0.00	-321.20M	-1.45B	-4.01B	4.96B	-6.64B

KEC International Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 746.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRCON	65 Neutral	₹125.94B	41.51	―	1.56%	-13.85%	-34.81%
RITES	64 Neutral	₹96.99B	28.60	―	3.24%	-5.23%	3.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
POWERMECH	61 Neutral	₹64.25B	19.27	―	0.05%	28.54%	19.19%
KEC	60 Neutral	₹146.78B	38.53	―	0.74%	12.21%	56.50%
KIRLOSBROS	59 Neutral	₹118.89B	25.72	―	0.43%	4.16%	-0.73%

KEC International Ltd. Corporate Events

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

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

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

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.