2 weeks ago

KEC International shares hit 52-week low as Q1 profit falls

KEC International shares hit 52-week low as Q1 profit falls
KEC International shares hit 52 week low, Q1 earnings hit stock sentiment · businesstoday.in

KEC International is a big company that builds things like power lines, roads, and pipelines in more than 110 countries.

It recently told people how much money it made in the first three months of its financial year.

The company made a lot less profit than last year — its profit went down by 42 percent.

It earned about the same amount of money, but its costs went up a lot.

This happened partly because of trouble in the Middle East, where shipping things costs more and takes longer.

Because of these problems, the company's shares fell to their lowest price in a year.

People who study companies, called analysts, still think the company will do well later on.

They say the cost problems might last a few more months but the company is trying to get customers to pay for the extra costs.

For regular people, this news is about a big company having a tough few months.

Key facts

Q1FY27 net profit
Rs 73 crore, down 42% from Rs 125 crore in Q1FY26
Q1FY27 revenue
Rs 5,024 crore, flat year-on-year
EBITDA and margin
Rs 291 crore, down 17% YoY; margin 5.8%, down 120 bps
Share price decline
9% since results; 43% over one year; 46% over two years
Middle East order book exposure
About 25% of order book, or roughly Rs 10,000 crore, split between Saudi Arabia and the UAE
Deferred revenue
Rs 300 crore deferred in 1QFY27, with some spillover expected into Q2
Axis Direct price target
Rs 540, cut from Rs 590, with buy call maintained
Motilal Oswal price target
Rs 580 and Rs 290 both cited in the article, with buy call reiterated

Quotes

Motilal Oswal

Financial analyst team at Motilal Oswal Securities

“We value the stock at 15x FY28E EPS to arrive at our TP of Rs 290. Reiterate BUY.”
businesstoday.in

Sources

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