KEC International (KEC)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach KEC International as a Graham-style value investor, asking first what I'm paying and what I'm getting. At ₹439.90, market cap ₹11,710 Cr, P/E 21.14, and P/B 1.90, with book value ₹231.39, this is not statistically cheap on earnings or assets, especially since Graham Number is ₹344.91, giving a negative margin of safety of -69.70%. The company earns respectable returns: ROE 12.74%, ROCE 17.98%, and Piotroski F-Score 8/9, which suggests recent accounting and operating momentum are not weak. Debt/Equity 0.87 is manageable but not fortress-like for a civil construction firm; Altman Z-Score 2.00 sits in the grey zone. Free cash flow ₹373 Cr is a positive, and the latest quarter showed sales ₹6,001 Cr and net profit ₹127 Cr. However, profit growth is -41.70% and sales growth is 0.00%, so the recent picture is stagnant to deteriorating. The 5-year revenue CAGR of 12.80% shows past growth, but current execution may be challenged. The 52-week range ₹348.35–₹893.00 shows volatility; at ₹439.90, price is closer to the low. Valuation signals conflict: PEG 0.76 looks attractive if growth returns, and DCF intrinsic value ₹749.55 implies upside, but EV/EBITDA 177.97 is extreme and demands caution. Dividend yield 1.25% and promoter holding 50.10% offer modest comfort. FairStock Score 50/100 says mixed. I would treat this as a cyclical infrastructure business, not a wide-moat compounder. I'd want recovery in profit and sales, lower leverage, and a clearer margin of safety before buying.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer