KEC International secures orders worth Rs 1,373 crore, stock hits 52 week high
The company has received orders from the railway, residential, and commercial building segments, and the business has secured orders for transmission and distribution (T&D) projects in India and America, as well as for types of cables in India and overseas.
Shares of KEC International, an RP Goenka Group company, touched a 52-week high of Rs 586 per share after gaining more than 6 per cent on the BSE during Wednesday’s session. KEC International stock pared some gains and closed at Rs 567.75 apiece, up 2.83 per cent.
The stock gained after the engineering, procurement, and construction company won orders worth Rs 1,373 crore across its various businesses.
At around 12:15 PM, KEC International shares were trading at Rs 567, up Rs 15.40 or 2.79 per cent today from the previous day’s closing of Rs 551.60 per share.
The company has received orders from the railway, residential, and commercial building segments, and the business has secured orders for transmission and distribution (T&D) projects in India and America, as well as for types of cables in India and overseas, according to a regulatory filing.
Management on new order win
In line with the government’s focus on increasing the capacity, speed, and safety of the Indian Railway network, Vimal Kejriwal, MD and CEO of KEC International, said the company forayed into the emerging segment of Automatic Block Signalling (ABS) to increase line capacity through automation.
"Our civil business continues to witness an exponential growth trajectory, which is reflected in the orders secured," Kejriwal said in his comment on the order win.
He added, "The repeat order in T&D from an existing private developer reaffirms the growth of the segment business and also witnesses good traction in tower supply orders in North America."
Brokerage’s view
Ventura Research has initiated a ‘buy' on KEC International for a target price of Rs 699 a share as it believes that the diversification of the company into newer areas of growth such as railway, civil, oil and gas, pipelines, and solar has worked in its favour as its revenue and order book are growing.
KEC International share price: Past performance
So far in 2023, the stock has gained over 18 per cent against the Nifty’s rise of over 2 per cent. In the last one month, KEC International jumped by over 7 per cent against the benchmark index's rise of over 1 per cent.
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