Bircs PCG: 'Buy' KEC International

Brics PCG recommends 'Buy' on KEC International  at Rs 230 with a target price of Rs 411.

The company has reported a decent net profit growth of 54.4 per cent during Q1FY07 even though sales grew by a marginal 8.9 per cent. The company's  sales and operating profit  are expected to grow at CAGR estimates of 22.7% and 21.4% for FY07 and FY08 respectively, as new contracts will start adding to revenues in Q3.

The company also has strong order book of Rs 2800 crore, its highest-ever order position.