KEC International Ltd. (KEC) AI Stock Analysis

• Market Cap: ₹225.05B
• Dividend Yield: 0.65%
• Average Volume (3M): 106.81K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 1.92
• Revenue Growth: 10.78%
• EPS Growth: 50.46%
• Country: IN
• Employees: 6,450
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 4.70
• Shares Outstanding: 266,200,000
• 10 Day Avg. Volume: 178,884
• 30 Day Avg. Volume: 106,814
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹955.00
• Price Target Upside: 12.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ₹925.00 ▲(9.42% Upside)

KEC International Ltd. demonstrates strong financial performance with robust revenue growth and improved profitability margins, which is the most significant factor in its score. However, the technical indicators suggest potential bearish momentum, and the valuation indicates the stock may be overvalued. These factors contribute to a moderate overall stock score.

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 International Ltd. generates revenue through its comprehensive EPC services across multiple sectors. The company earns income by undertaking large-scale infrastructure projects in power transmission and distribution, railway electrification, civil engineering, urban infrastructure, solar energy, and smart infrastructure. Key revenue streams include project contracts for designing and constructing transmission lines, substations, and rail systems. The company also manufactures and sells cables, which adds to its revenue. Strategic partnerships and alliances with governments and private entities around the world aid in securing contracts and projects, contributing significantly to KEC's earnings.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	218.47B	218.47B	199.14B	172.82B	137.42B	131.14B
Gross Profit	40.71B	49.36B	39.70B	36.61B	17.50B	21.37B
EBITDA	15.11B	15.04B	12.62B	9.78B	9.70B	12.69B
Net Income	5.71B	5.71B	3.47B	1.76B	3.32B	5.53B
Balance Sheet
Total Assets	221.80B	221.80B	190.31B	186.69B	163.39B	140.48B
Cash, Cash Equivalents and Short-Term Investments	6.56B	6.56B	2.06B	2.87B	2.77B	2.03B
Total Debt	39.57B	39.57B	39.85B	33.83B	30.65B	20.66B
Total Liabilities	168.32B	168.32B	149.36B	148.97B	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: 845.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 845.4 is below the 20-day moving average (MA) of 865.78, below the 50-day MA of 846.66, and below the 200-day MA of 855.04, indicating a bearish trend. The MACD of 7.40 indicates Positive momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.98 is Positive, 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
KIRLOSBROS	69 Neutral	₹155.02B	37.20	19.84%	0.36%	7.45%	19.19%
KEC	69 Neutral	₹225.05B	36.85	―	0.65%	10.78%	50.46%
RITES	68 Neutral	₹119.43B	30.94	14.57%	3.06%	-7.20%	-9.49%
IRCON	65 Neutral	₹159.61B	23.89	11.50%	1.56%	-13.80%	-30.87%
POWERMECH	65 Neutral	₹84.90B	26.63	15.12%	0.05%	26.93%	21.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

KEC International Ltd. Corporate Events

KEC International Secures Rs. 1,236 Crore Civil Project Orders

KEC International Ltd. has announced securing new orders worth Rs. 1,236 crores for civil projects in India, marking its largest order in the Buildings & Factories segment. This significant achievement enhances KEC’s strategic expansion into the high-rise residential sector, boosting its civil order book and strengthening its market position with the addition of two prestigious clients. The company’s year-to-date order intake has grown by approximately 35% compared to the previous year, reflecting robust business growth.