Share price of KEC international (KECI) has corrected about 50% in the last two months owing to COVID-19 led disruptions.
With the company getting permission to resume operations from various authorities, the recent fall in price offers a fresh buying opportunity.
The company has already started the operations at a few of its sites albeit in a phased manner.
Majority of the Company’s International Project Sites for T&D have been operating, while domestically the Company has commenced operations at some of its T&D/Railways/Civil sites after receiving the requisites approvals.
KECI has also sought permission of the relevant authorities for resuming operations at its remaining factories. Its facilities in Brazil and Mexico, which have been identified as essential sector in the respective geographies, have been operational throughout this period.
KEC management has guided that the revenue is expected to decline marginally (Rs 300 crore) in 4QFY20. Historically, the last quarter of the fiscal contributes meaningfully in so far as collections and orders inflow are concerned.
Net net we expect both a volume and value slowdown for the company in coming 2 to 3 quarters on account of the lockdown in India and countries where kec has large business exposure
A pick up in demand is expected from q3 of FY21 and hopefully a full recovery from FY2
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