Kec International Ltd.

“KEC participates credibly in India's multi-decade power infrastructure buildout and holds a defensible #2 T&D EPC position, but structural 7% EBITDA margins, 2.5-3x net debt/EBITDA leverage, and ~50% FCF conversion make compounding difficult and leave the business dangerously exposed to the commodity-plus-payment-delay stress cycle demonstrated in FY2022-23; at 14.7x forward earnings the stock is fairly priced for a ~10% CAGR return — adequate but not compelling against higher-quality alternatives accessing the same sector tailwind.”