infrastructure
KEC International
KEC · Nifty 50
₹518.3
Price 2026-06-17
At a Glance
Fundamental
50/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
KEC International scores 50/100 on fundamentals (adequate). KEC International: BROAD EXPANSION regime.
Fundamental Score: 50/100 · ADEQUATE · 2 signals detected
DuPont Analysis
ROE 9.8% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.85% is modest leverage-driven and stable. Net margin of 2.6% × asset turnover of 0.93x × leverage of 4.1x.
What This Means
Net margin of 2.6% means the company keeps ₹2.6 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.93x means the company efficiently uses its assets to generate revenue. Leverage of 4.1x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
22.1%
Operating
6.2%
Net
2.6%
Gross margin 22.1% → operating margin 6.2% → net margin 2.6%. Margins are IMPROVING.
Financial Health
Earnings Quality
WEAKCash flow only covers -0.7x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
ADEQUATEInterest covered only 2.2x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 3.3x is moderate.
Free Cash Flow
MODERATEFCF margin negative at -3.2% — spending more than earning. Check capex cycle.
Peer Comparison
KEC International is compared against 10 peers in the infrastructure sector.
Key Watchpoints
Breaks above ₹544 (+5%)
Trend reversal confirmation
Breaks below ₹492 (-5%)
Further downside risk
Infrastructure sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only -0.7x net income. Profit not converting to cash — aggressive accounting possible.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Working capital is consuming significant cash. Operational efficiency declining.
No single controlling shareholder. Management may not be aligned with shareholders.
Collection cycle changing. Collection improving — positive for cash flow.
Company not overvalued on revenue basis.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes