During Thursday’s morning trading session, the shares of a global infrastructure engineering, procurement, and construction (EPC) major surged by nearly 1.4 percent on BSE. The company boasts an order book 1.8 times its market capitalization. Can you guess the stock?
Price Movement
With a market capitalisation of Rs. 20,440 crores, the shares of KEC International Limited opened in the green at Rs. 776.7, up by nearly 1.2 percent, as against its previous closing price of Rs. 767.25. The stock has delivered positive returns of nearly 5 percent in the last one year, as well as over 11 percent returns in the last one month.
Order Book & Management Guidance
As of the third quarter of FY25, the consolidated order book of KEC International grew by 24 percent to reach Rs. 37,440 crore, with a growth of 72 percent in order intake amounting to Rs. 22,090 crore.
The total order book of Rs. 37,440 crores comprises 59 percent from the Transmission & Distribution (T&D) segment, 25 percent from the Civil segment, 11 percent from Transportation, 3 percent from Renewables, and 1 percent each from the Cables and Oil & Gas segments. Of this, 67 percent accounts for domestic orders, while 33 percent comes from international markets.
KEC International maintains a strong order book + L1 pipeline of over Rs. 41,000 crores, while the Tenders under Evaluation and in Pipeline of over Rs. 1.5 lakh crore. The management remains optimistic about T&D segment growth, supported by a healthy order intake and the government’s focus on renewable energy. The company projects revenue growth of 12–14 percent for FY25, with an aim to achieve 15 percent growth in FY26.
Debt levels are expected to be optimized further, with a significant reduction in net debt by the end of FY25. A positive outlook is maintained for margins in the Civil and T&D segments, with expectations of reaching double digits as legacy orders are completed.
Latest Order Updates
15th March: KEC International bagged orders worth Rs. 1,267 crores across its Transmission & Distribution (T&D) and Cables segments. The T&D division received NOAs/comfort letters for projects in India and the Americas, while the Cables segment obtained orders for the supply of various types of cables and conductors both domestically and internationally.
1st April: The company secured orders totaling Rs. 1,236 crores across multiple segments. The T&D segment secured contracts in the Middle East (UAE and Kuwait) and a substation project from a private TBCB player in India. The Civil segment received an order for a residential project from a leading private developer in Western India.
In the Transportation segment, KEC secured an order for the Train Collision Avoidance System (TCAS) under the ‘Kavach’ initiative in India. Additionally, the Cables segment received orders for the supply of various types of cables in both Indian and international markets.
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Financial
The revenue from operations of KEC International stood at Rs. 5,349 crores in Q3 FY25, rising by 7 percent YoY from Rs. 5,007 crores in Q3 FY24, and the net profit grew by 34 percent YoY to Rs. 130 crores from Rs. 97 crores, during the same period. EBITDA for Q3 FY25 increased by 22 percent YoY to Rs. 374 crores, up from Rs. 308 crores in Q3 FY24, while the EBITDA margins grew to 7 percent, from 6.2 percent, over the same period.
Key Financial Ratio
In terms of key financial metrics, KEC International has a Return on Equity (RoE) of 8.8 percent and a return on capital employed (RoCE) of 16 percent. Additionally, the stock has a P/E ratio of 46.6, compared to the industry’s P/E ratio of 39.1, and its debt-to-equity ratio stands at 0.85.
About the company
KEC International Limited is a global infrastructure Engineering, Procurement and Construction (EPC) major and an RPG Group Company, with a presence in the verticals of Power Transmission and Distribution (T&D), railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables.
Written by Shivani Singh
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