K E C International Adjusts Technical Trend Amid Strong Profit Growth and Cash Position
K E C International has recently adjusted its evaluation, reflecting a shift in its technical trend amid current market dynamics. The company reported a significant increase in profit after tax and maintained a strong cash position, while its market capitalization positions it as a leading player in the construction sector.
K E C International, a prominent player in the construction industry, has recently undergone an evaluation adjustment that reflects its current market dynamics. The revision in its score indicates a shift in the technical trend, moving from a mildly bearish stance to a sideways position. This adjustment highlights the company's recent performance metrics, including a notable growth in profit after tax, which reached Rs 214.97 crore, marking a 40.78% increase. Additionally, the profit before tax, excluding other income, showed a significant rise of 67.74% at Rs 158.92 crore.The company has maintained a strong cash position, with cash and cash equivalents at their highest level of Rs 516.53 crore. Despite these positive indicators, K E C International's technical trend suggests a lack of clear price momentum. The stock is currently trading at a discount compared to its peers, with a fair valuation reflected in its return on capital employed (ROCE) of 12.4 and an enterprise value to capital employed ratio of 2.8.
With a market capitalization of Rs 21,393 crore, K E C International stands as the second-largest entity in its sector, holding a significant 28.19% market share. The company’s institutional holdings are robust at 39.6%, indicating a strong backing from investors with substantial analytical resources.
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