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KEC International: Expect recovery in the second half of current fiscal

Money ControlMoney Control Ā· 4m
KEC International: Expect recovery in the second half of current fiscal

KEC International, an engineering, procurement, and construction company, has reported a strong quarter mainly driven by improved realizations. The company's medium-term prospects are boosted by initiatives like China Plus and protectionist measures for the tyre industry. While valuations are not cheap, the improved outlook for the medium term is encouraging. KEC International has seen higher revenue growth in its transmission and distribution business due to improved execution, leading to higher operating margins. The company's strong order growth indicates a positive future outlook. Debt reduction will help improve the balance sheet and lower interest expenses. The stock is currently trading at 21 times its fiscal 2026 estimated earnings.

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