KEC International Limited Term Buy Call: StocksIdea.com

KEC International Limited

KEC International Limited is one of the largest Power Transmission EPC companies in the world. Company has made an indelible mark on the world map by constantly and consistently re-engineering itself to retain its position of leadership in the areas of quality, technology, capacity and capability.

KEC is supported by multi-location manufacturing facilities and a workforce spread out over 20 countries. KEC has gone from strength to strength successfully exporting towers to over 20 countries and widening its client base across the world.

The company has strong presence in the Middle East, the Pacific Rim countries and Africa. KEC has helped transmit power to various countries that include Argentina, Brazil, Canada, Egypt, Ethiopia, Ghana, India, Indonesia, Iran, Iraq, Kenya, Kuwait, Lebanon, Malaysia, New Zealand, Nepal, Nigeria, Philippines, South Africa, Sri Lanka, Saudi Arabia, Sudan, Syria, Thailand, Tunisia, USA, UAE and Vietnam. KEC has more than 50 years of experience in construction of Transmission Lines. Company is a part of RPG group that is one of the largest business houses of India with a assets of over US $2.5 billion. Today the Group companies have worldwide presence and partnerships with many of the transnational corporate.

The factory at Jaipur was built on a plot measuring 230,680 sq. mt. and started in 1967. It combines highly skilled manpower with modern manufacturing infrastructure to ensure products of the highest quality. Built on 120,000 sq. mt. of land, the factory at Butibori, Nagpur was started in 1996. It incorporates the latest technology for fabrication and hot dip galvanizing of a variety of structures. The company has constructed some of the heaviest and tallest transmission towers in India and abroad. It has successfully battled against & constructed towers in difficult terrains like deserts, mountains, land mines and rivers.

KEC's strengths lie in the areas of Design, Manufacture, supply and Construction of Turnkey Projects of Power Transmission lines of voltages upto 800 KV and in the execution of Railway Electrification projects, setting up Sub-stations and power Distribution Networks, Optical Fibre Cable (OPGW) installations, Turnkey Telecom Infrastructure Services and maintenance of Power Transmission Lines. Company has successfully designed heavy River Crossing towers as well as towers up to 800 KV.

The division boasts of ultra modern facilities that includes 3D analysis & design software for optimizing use of Mild Steel and High tensile Steel, 3D drafting software for automatic generation of shop drawings for fabrication and code generation for CNC operation for manufacturing, Software for foundation designing and construction drawings, Software for development of sag templates and generation of sag tension charts for line stringing, Software for development of 3D profile drawing which facilitated automatic checking of clearances, optimizing of tower quantities and verifying the adequacy of the tower strength.

KEC has two of Asia's most sophisticated Tower Testing stations, capable of testing towers of up to 1000 KV Transmission Line. These testing stations serve the objective of satisfying customers about design parameters of tower by subjecting Proto-Towers to various test loads.

The heart of any manufacturing facility is its infrastructure. KEC has two manufacturing plants at Jaipur and Nagpur in India. In these two plants, KEC can manufacture 50,000 tons of towers annually. KEC meets the world's most stringent quality standards. Its plants are certified as per ISO 9001 and 14001 for Quality and Environmental Standards. The specialized transmission lines built by KEC span huge raging rivers are like Nile in Egypt, Kosi in Nepal and Brahmaputra in India. Besides having 20 teams of highly skilled surveyors, KEC has 13 Total Stations (comprising Electronic Distance Meters, theodolite and software for recording survey data like levels, angles and distance. In addition KEC has the capability and experience of conducting surveys via Geo-positioned satellite.

KEC is seen benefiting from privatization of transmission lines in India. Company is making conscious efforts to enter new markets every year. Going forward, KEC is expected to sustain this momentum. Significant growth in international market and demand revival in domestic market with lot of new business expected in ensuing quarters will drive top line growth while aggressive project execution measures and efficient utilization of resources is expected led to impressive growth in profitability. At CMP, the stock is trading at 14.9 times its FY2011 Estimated EPS. We recommend investors to “BUY” “KEC international limited” with medium to long-term investment horizon.