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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532714 | NSE: KEC

KEC International Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:56 pm

Market Cap 26,396 Cr.
Current Price 992
High / Low1,075/566
Stock P/E62.6
Book Value 190
Dividend Yield0.40 %
ROCE16.0 %
ROE8.80 %
Face Value 2.00
PEG Ratio-9.43

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for KEC International Ltd

Competitors of KEC International Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aartech Solonics Ltd 226 Cr. 71.388.1/42.081.9 9.920.35 %4.81 %1.64 % 5.00
Voltamp Transformers Ltd 9,640 Cr. 9,52214,800/4,95128.1 1,4010.95 %31.6 %24.3 % 10.0
Transformers & Rectifiers India Ltd (TRIL) 11,186 Cr. 745846/110145 38.90.03 %14.8 %9.33 % 1.00
Power Grid Corporation of India Ltd 3,03,107 Cr. 326366/20819.3 99.03.45 %13.2 %19.0 % 10.0
KEC International Ltd 26,396 Cr. 9921,075/56662.6 1900.40 %16.0 %8.80 % 2.00
Industry Average58,852.83 Cr1,947.5871.77290.040.86%13.59%12.61%5.00

All Competitor Stocks of KEC International Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales2,5403,5873,3404,2753,3184,0644,3755,5254,2444,4995,0076,1654,512
Expenses2,3803,3343,1014,0233,1503,8864,1755,2423,9994,2254,6995,7774,242
Operating Profit160253239252168178200283244274308388270
OPM %6%7%7%6%5%4%5%5%6%6%6%6%6%
Other Income2-40538162631626843
Interest65738295100128149162159178164154155
Depreciation38393942394041424247494847
Profit before tax59101122118372711864766121193112
Tax %21%20%23%5%16%-108%-54%16%9%15%20%21%22%
Net Profit4680941123155187242569715288
EPS in Rs1.793.123.644.361.212.150.682.811.652.173.775.903.41

Last Updated: October 22, 2024, 4:49 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 22, 2024, 4:49 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales6,9797,9028,4688,5188,58410,05311,00111,96513,11413,74217,28219,91420,182
Expenses6,5337,3397,8897,7337,6738,9579,76410,63511,87412,74216,36218,56118,942
Operating Profit4475635797859111,0951,2371,3301,2401,0019201,3531,241
OPM %6%7%7%9%11%11%11%11%9%7%5%7%6%
Other Income16-414661422311129-31595693
Interest260333376368332318398403360413656797651
Depreciation567188132130110117147153158161185190
Profit before tax147155261291463689753790756399161426492
Tax %56%57%38%49%34%33%34%28%27%17%-9%19%
Net Profit6567161148305460496566553332176347392
EPS in Rs2.532.606.265.7511.8617.9119.2822.0021.5012.926.8513.4915.25
Dividend Payout %20%23%14%17%14%13%14%15%19%31%44%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)3.08%140.30%-8.07%106.08%50.82%7.83%14.11%-2.30%-39.96%-46.99%97.16%
Change in YoY Net Profit Growth (%)0.00%137.22%-148.37%114.16%-55.26%-42.99%6.29%-16.41%-37.67%-7.02%144.15%

KEC International Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:13%
3 Years:15%
TTM:12%
Compounded Profit Growth
10 Years:17%
5 Years:-7%
3 Years:-14%
TTM:124%
Stock Price CAGR
10 Years:26%
5 Years:29%
3 Years:28%
1 Year:70%
Return on Equity
10 Years:14%
5 Years:12%
3 Years:8%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital51515151515151515151515153
Reserves1,0961,1401,2781,2391,5351,9462,3842,7463,3083,5693,7204,0445,003
Borrowings1,6692,1302,2143,2212,1061,7661,8392,5192,0663,0653,3833,9854,312
Other Liabilities3,4184,0694,1834,3625,0236,7497,3897,5388,5669,61310,11710,95110,291
Total Liabilities6,2357,3907,7278,8748,71510,51211,66312,85513,99216,29817,27119,03119,660
Fixed Assets1,3211,3521,2591,1981,1491,1121,1821,3521,3981,5381,5831,6281,591
CWIP3018168578784182111455
Investments00025130391322113000
Other Assets4,8846,0206,4527,6437,4319,28310,46011,39612,57514,74515,67717,38918,014
Total Assets6,2357,3907,7278,8748,71510,51211,66312,85513,99216,29817,27119,03119,660

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-87-9153-751,66266019987840-284614311
Cash from Investing Activity +-122-136125-7-182-4-67-113-134-204-139-243
Cash from Financing Activity +161132-216-28-1,379-638-1503-659496-401-145
Net Cash Flow-48-1462-11010117-18-2347874-76

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow446.00561.00577.00782.00909.000.000.00-1.00-1.00-2.00917.00-2.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1511761662001791831621661501369076
Inventory Days384538323545435154655953
Days Payable235286266248278331324327395420433400
Cash Conversion Cycle-46-65-62-17-64-103-119-111-191-219-284-271
Working Capital Days49576311274668293861018491
ROCE %16%16%15%16%20%27%29%25%21%14%12%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters51.82%51.82%51.88%51.88%51.88%51.88%51.88%51.88%51.88%51.88%51.88%50.10%
FIIs12.25%12.19%12.17%11.58%12.62%12.60%11.58%11.25%10.90%12.45%12.66%13.60%
DIIs26.35%26.39%26.47%26.52%25.56%25.79%26.65%27.16%26.95%25.84%25.29%26.33%
Public9.58%9.60%9.48%10.03%9.93%9.73%9.90%9.73%10.28%9.83%10.16%9.97%
No. of Shareholders1,10,7931,12,2591,07,6321,06,2481,00,15498,14598,6431,03,0191,16,2811,10,6181,25,2271,36,627

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan9,032,3501.21938.052,810,0852024-11-20221.43%
Kotak Flexicap Fund - Regular Plan6,900,0001.33716.62,810,0852024-11-20145.54%
HDFC Small Cap Fund - Regular Plan4,689,8391.43487.062,810,0852024-11-2066.89%
HDFC Hybrid Equity Fund - Regular Plan4,272,6521.79443.742,810,0852024-11-2052.05%
HSBC Value Fund3,887,9702.86403.792,810,0852024-11-2038.36%
Nippon India Multi Cap Fund2,810,0850.74291.842,810,0852024-11-200%
HSBC Small Cap Fund - Regular Plan2,572,1361.54267.132,810,0852024-11-20-8.47%
DSP Flexi Cap Fund2,319,4241.94240.882,810,0852024-11-20-17.46%
Bandhan Sterling Value Fund1,861,7751.82193.352,810,0852024-11-20-33.75%
Nippon India Small Cap Fund1,730,8680.29179.762,810,0852024-11-20-38.41%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)13.496.8512.9221.5022.00
Diluted EPS (Rs.)13.496.8512.9221.5022.00
Cash EPS (Rs.)20.7013.1319.0627.4327.72
Book Value[Excl.RevalReserv]/Share (Rs.)159.30146.69140.80130.68108.81
Book Value[Incl.RevalReserv]/Share (Rs.)159.30146.69140.80130.68108.81
Revenue From Operations / Share (Rs.)774.57672.18534.51510.08465.40
PBDIT / Share (Rs.)49.2833.4935.6645.5548.44
PBIT / Share (Rs.)42.0727.2129.5239.6242.72
PBT / Share (Rs.)16.596.2615.5429.4030.74
Net Profit / Share (Rs.)13.496.8512.9221.5022.00
NP After MI And SOA / Share (Rs.)13.496.8512.9221.5022.00
PBDIT Margin (%)6.364.986.678.9310.40
PBIT Margin (%)5.434.045.527.769.17
PBT Margin (%)2.140.932.905.766.60
Net Profit Margin (%)1.741.012.414.214.72
NP After MI And SOA Margin (%)1.741.012.414.214.72
Return on Networth / Equity (%)8.464.669.1716.4520.21
Return on Capital Employeed (%)23.9215.6817.9027.0834.82
Return On Assets (%)1.820.942.033.934.39
Long Term Debt / Equity (X)0.060.130.100.060.05
Total Debt / Equity (X)0.930.840.790.540.73
Asset Turnover Ratio (%)1.060.910.860.900.87
Current Ratio (X)1.111.111.131.161.13
Quick Ratio (X)1.031.031.041.071.05
Inventory Turnover Ratio (X)7.166.756.786.657.72
Dividend Payout Ratio (NP) (%)22.2358.4130.950.0027.69
Dividend Payout Ratio (CP) (%)14.4930.4620.980.0021.97
Earning Retention Ratio (%)77.7741.5969.050.0072.31
Cash Earning Retention Ratio (%)85.5169.5479.020.0078.03
Interest Coverage Ratio (X)1.931.602.904.464.04
Interest Coverage Ratio (Post Tax) (X)1.531.332.193.102.84
Enterprise Value (Cr.)21380.4914579.1912348.7212144.356667.34
EV / Net Operating Revenue (X)1.070.840.890.920.55
EV / EBITDA (X)16.8816.9313.4710.375.35
MarketCap / Net Operating Revenue (X)0.890.670.700.800.39
Retention Ratios (%)77.7641.5869.040.0072.30
Price / BV (X)4.363.112.693.141.70
Price / Net Operating Revenue (X)0.890.670.700.800.39
EarningsYield0.010.010.030.050.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of KEC International Ltd as of November 22, 2024 is: 1,050.86

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, KEC International Ltd is Undervalued by 5.93% compared to the current share price 992.00

Intrinsic Value of KEC International Ltd as of November 22, 2024 is: 981.10

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, KEC International Ltd is Overvalued by 1.10% compared to the current share price 992.00

Last 5 Year EPS CAGR: -6.64%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.92%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -129.33, which is a positive sign.
  3. The company has shown consistent growth in sales (11.62 cr) and profit (444.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 79.83, which may not be favorable.
  2. The company has higher borrowings (2,636.54) compared to reserves (2,539.08), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in KEC International Ltd:
    1. Net Profit Margin: 1.74%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.92% (Industry Average ROCE: 13.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.46% (Industry Average ROE: 12.61%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.53
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.03
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 62.6 (Industry average Stock P/E: 71.77)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.93
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

KEC International Ltd. is a Public Limited Listed company incorporated on 18/03/2005 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L45200MH2005PLC152061 and registration number is 152061. Currently Company is involved in the business activities of Manufacture of wiring and wiring devices. Company’s Total Operating Revenue is Rs. 12573.27 Cr. and Equity Capital is Rs. 51.42 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Transmission/EquipmentRPG House, Mumbai Maharashtra 400030investorpoint@kecrpg.com
https://www.kecrpg.com
Management
NamePosition Held
Mr. Harsh V GoenkaChairman
Mr. Vimal KejriwalManaging Director & CEO
Mr. Vinayak ChatterjeeNon Exe.Non Ind.Director
Mr. D G PiramalIndependent Director
Mr. A T VaswaniIndependent Director
Ms. Nirupama RaoIndependent Director
Mr. Vimal BhandariIndependent Director
Mr. S M TrehanIndependent Director
Mr. Vikram GandhiIndependent Director
Mr. M S UnnikrishnanIndependent Director
Dr. Shirish SankheIndependent Director
Mr. Arvind SinghIndependent Director
Ms. Neera SaggiIndependent Director

FAQ

What is the latest intrinsic value of KEC International Ltd?

The latest intrinsic value of KEC International Ltd as on 21 November 2024 is ₹1050.86, which is 5.93% higher than the current market price of ₹992.00.

What is the Market Cap of KEC International Ltd?

The Market Cap of KEC International Ltd is 26,396 Cr..

What is the current Stock Price of KEC International Ltd as on 21 November 2024?

The current stock price of KEC International Ltd as on 21 November 2024 is ₹992.

What is the High / Low of KEC International Ltd stocks in FY 2024?

In FY 2024, the High / Low of KEC International Ltd stocks is 1,075/566.

What is the Stock P/E of KEC International Ltd?

The Stock P/E of KEC International Ltd is 62.6.

What is the Book Value of KEC International Ltd?

The Book Value of KEC International Ltd is 190.

What is the Dividend Yield of KEC International Ltd?

The Dividend Yield of KEC International Ltd is 0.40 %.

What is the ROCE of KEC International Ltd?

The ROCE of KEC International Ltd is 16.0 %.

What is the ROE of KEC International Ltd?

The ROE of KEC International Ltd is 8.80 %.

What is the Face Value of KEC International Ltd?

The Face Value of KEC International Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in KEC International Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE