Religare Capital has maintained 'Buy' on KEC International (KECI) after the company declared its second quarter results. The stock broker fixed price target at Rs 180.
Commenting on the results, Religare said, ''KECI's Q2FY16 results were below estimates-PAT at Rs 441 million vs. RCMLe Rs 515 million as revenue was hit by soft commodity prices. While management maintained its margin guidance, it now expects FY16 revenue growth to come in at the lower end of its targeted 10-15% growth band due to the weak commodity prices.''
Commenting on the investment rationale, the stock broker said, ''The company's management has tweaked its revenue outlook to the lower end of the earlier provided guidance of 10-15%, we believe KECI's EPS will grow at over 30% CAGR during FY16-FY18 on account of lower commodity prices and a turnaround in SAE and the infrastructure and cables businesses. We roll over to a Mar'17 TP of Rs 180 and maintain Buy on KECI given its improving cash flows and returns profile.''