Kec International Ltd.
ISIN: INE389H01022 • Market Cap: ₹11,262 Cr
The 5-Pillar Quality Audit for Kec International Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (6.8%), Return on Capital Employed (25.8%), and equity compounding (9.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.83 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.7%) and 3Y PAT CAGR (16.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 20.34 vs PEG of 1.16 and Dividend Yield of 1.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 50.1%, backed by 33.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 25.8%)
Kec International Ltd. generates exceptional return on capital employed of 25.8%, reflecting pricing power and competitive moat.
Attractive Valuation Margin (P/E: 20.34)
Trading at a P/E multiple of 20.34, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (33.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 33.3%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking KEC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 69/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Construction Sector Peer Comparison
Compare KEC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Kec International Ltd. (KEC)Current | 69/100 | ₹11,262 Cr | 20.34 | 25.8% | 0.83 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Kec International Ltd.
Q:What is the 5-Pillar Fundamental Score for Kec International Ltd. (KEC)?
Kec International Ltd. has a RupeeTools Fundamental Score of 69/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (63/100), Financial Health (67/100), Growth (62/100), Valuation (77/100), and Ownership Quality (85/100).
Q:Is KEC fundamentally strong for long-term investment?
KEC currently holds a moderate quality rating of 69/100. While it operates in the Construction sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does KEC pass the Coffee Can Investing filter?
Yes! KEC satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does KEC compare against other Construction peers?
Within India's Construction sector, KEC trades at a P/E of 20.34 and generates an ROCE of 25.8%. Compare its 5-Pillar score of 69/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.