Shares of KEC International (KEC) gained 6.17% on Wednesday’s trades to reach an intraday high of ₹ 586.15 apiece on the National Stock Exchange (NSE) after the company received a huge order. Its shares settled at ₹ 567.75.
KEC International, a part of the RPG group, is engaged in Engineering, Procurement and Construction (EPC) business. It is present in industries like cables, oil & gas pipelines, solar, smart infrastructure, railways, urban infrastructure, and power transmission and distribution.
According to an exchange filing, KEC secured new orders worth ₹ 1,373 crores across its various businesses. Its railway division received an order in the technologically advanced and conventional/emerging segments in India. This includes Automatic Block Signaling (ABS) system and Semi High-Speed Rail – Orders for 2 x 25 kV Overhead Electrification (OHE) & associated works for speed upgradation.
This includes a contract for a 400 kV transmission line in India, the supply of towers in both India and the United States, and the provision of hardware, towers and poles in the Americas, all of which were obtained by its subsidiary SAE Towers.
Orders in the segment of residential and commercial structures were received by its civil business. Additionally, both in India and abroad, its cables division received orders for a variety of cables.
With a market capitalization of ₹ 14,194 crores, KEC International is a small cap stock. It has a low return on equity of 4.76%, but an ideal debt to equity ratio of 0.90. Its shares were trading at a price to earnings ratio of 80.60 which is substantially higher than the industry P/E of 8.50, indicating that the stock might be overvalued as compared to its competitors.
The company’s promoters hold a 51.88% stake in it, followed by mutual funds with 23.24%, foreign institutions with 12.60%, retail investors with 10.22% and other domestic institutions with 2.06%
Written by Simran Bafna
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