Brics Securities: 'Buy' KEC International

Brics Securities recommends to 'Buy' KEC International at the current market price of Rs 276 with a price target of Rs 491.

They reaffirm their positive outlook on KEC and expect the revamped balance sheet to further augment its growth going forward.

The financial projections remain unchanged at 22.7% sales CAGR and 46.7% earnings CAGR till FY08. The target price includes Rs 4 per share for the company's investment in RPG Transmission comprising 16.09 lakh shares.

At Rs 487 they are valuing KEC at 22.4x on FY07E and 17.3x on FY08E.