Shares of this green energy stock jumped up to 5 percent on Tuesday after the company secured an order totaling Rs 1,315 crores across various business segments. In the past six months, the company’s stock has gained more than 30 percent.
With a market capitalization of Rs 16,853.43 crores, the stocks of KEC International Limited opened their trading hour on Tuesday at Rs 673.15 and currently trade at Rs 655.55. The company’s scrip observed an intra-day high of Rs 685 indicating a gain of approximately 5 percent as compared to the previous closing levels of Rs 652.25 apiece.
The company, in a recent filing with the BSE dated 16th October 2023, intimated that it has secured an order worth Rs 1,315 crores across various business segments including the “Transmission & Distribution” (T&D) and “Cables” segment.
The T&D business of the company received orders from domestic sources within India and overseas from Australia, the Middle East, and American regions.
The domestic order pertains to a 765 kilovolts (kV) transmission line and a 765 kV AIS Substation from Power Grid Corporation of India Limited (PGCIL). In addition, the international orders consist of a supply of towers, hardware, and poles.
Coming onto the cables segment, the company has secured orders for the supply of various types of the same within as well as outside India.
Having a glance at the past couple of financial years, the company has successfully been able to increase its operating revenues from Rs 13,742.26 crores during FY21-22 to Rs 17,281.71 crores during FY22-23.
Due to an increase in the operating expenditures, the company’s profitability ratios have taken a hit with the return on equity (RoE) dipping from 9.52 percent during FY21-22 to 4.76 percent during FY22-23 Moreover, the return on capital employed (RoCE) declined from 13.8 percent to 12.15 percent.
According to the latest shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 51.88 percent stake, and the Public (retail) investors hold the remaining stake of 48.12 percent in the company.
KEC International Limited is an infrastructure company undertaking projects on an ‘engineering, procurement, and construction’ (EPC) basis. The company has a presence in various sectors including power transmission and distribution, cable manufacturing, water resource management, renewable energy, etc.
Written by Amit Madnani
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