Shares of KEC International Ltd climbed as much as 3.9 per cent to Rs 384, highest since May 18. Macquarie Research has initiated coverage on the stock with “outperform” rating, and has kept the price target at Rs 454.

“While power transmission and distribution is a well-established business, we are more enthused by KECL's well thought-out diversification strategy into related businesses like railway electrification and civil,” Macquarie said in a note.

The brokerage expects the utility projects construction company to benefit from state spending on transmission and distribution.

KECL is one of the few companies in the construction space which has not raised equity for a decade and does not need to raise equity to fund growth as leverage has already come down from 2.4x in FY 2016 to 0.8x currently, analysts added.

Over 371,000 shares changed hands against 30-day moving average of 599,010. About 21 of the 26 analysts covering the stock have a “buy” or higher rating, 4 have “hold” while 1 has rated it a “strong sell”; their median price target is Rs 440, according to Thomson Reuters data.

Up to Tuesday's close, the stock had risen about 42 per cent in 12 months.

Related Topics