KEC International zooms 5% on winning orders worth Rs 1,429 crore

Photo: @KEC_Intl (Twitter)
Shares of KEC International, on Tuesday, gained 5 per cent at Rs 469 on the BSE in intra-day trade after securing new orders worth Rs 1,429 crore across its various businesses. The stock of the heavy electrical equipment company was trading close to its 52-week high level of Rs 486.45, hit on March 3, 2021.

In an exchange filing on March 22, KEC International said its Transmission & Distribution (T&D) business has secured orders of Rs. 701 crore for T&D projects from Power Grid Corporation of India Ltd. (PGCIL) and other customers in India, East Asia Pacific and the Americas.

The Railways business has secured orders of Rs 366 crore in the emerging segments in India: Semi High-Speed Rail - Order for 2 x 25 kV Overhead Electrification (OHE) & associated works for speed upgradation; and Tunnel Ventilation - order for tunnel ventilation system and associated works.

The Civil business has secured orders of Rs. 318 crore from reputed private players for infra works in the cement, residential and metals & mining segments in India, while the Cables business has secured orders of Rs 44 crore for various types of cables in India and overseas.

At 9:45 AM, the stock was trading 2.83 per cent higher at Rs 459.95 as compared to 0.34 per cent gain in the S&P BSE Sensex. Around 3.22 lakh shares have changed hands on the NSE and BSE, combined, so far.

In a report, dated February 12, Edelweiss said, "KEC boasts a track record of diversification and financial discipline, not to mention its much-improved skillset. The company is sharpening focus on new infra ventures—railway (metro), civil and smart infra. It won a couple of contracts in new civil sub-segments: chemicals, warehouse, FGD and metro. These businesses are highly scalable. We believe the civil business and Railways will be major growth drivers over the next few years given the government’s high focus on infra." 

"Management is confident of turning in a double-digit margin and similar working capital requirement to that of traditional business. We are, however, slightly cautious on near-term margins given commodity headwinds. Maintain ‘BUY’," it said.

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