.

Shares of this cable stock under the ‘mid-cap’ category jumped approximately 3 percent in Thursday’s trading session after the company successfully secured orders worth Rs 1,175 crores across various business segments. 

With a market capitalization of Rs 17,199.21 crores, the stocks of KEC International Limited opened their trading hour on Thursday at Rs 685.45 and currently trade at Rs 669, gaining nearly 3 percent as compared to the previous closing levels of Rs 650.85 apiece. 

Such upside movement in the company’s stock price was observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about bagging an order across numerous verticals of the company totaling Rs 1,175 crores. 

The ‘T&D’ business secured orders for projects within India as well as outside India, the former from Power Grid Corporation of India Limited (PGCIL) for Substations and the latter from the American regions for the supply of Transmission Hardware. 

In addition, the ‘Civil’ and ‘Solar’ businesses of the company received orders for Residential buildings and solar projects respectively within the country. 

“The consistent flow of orders in T&D, particularly from PGCIL, has significantly enhanced our India T&D order book. With these orders, our YTD order intake stands at over Rs 14,000 crores.”, commented Mr. Vimal Kejriwal, MD & CEO, KEC International Limited

During the recent financial quarters, the company reported robust financial performance as far as the prime business indicators, viz, operating revenues and after-tax profits are concerned. The former rose from Rs 4,499 crores during Q2FY24 to Rs 5,006 crores during Q3FY24, and the latter, during the same period, shifted from Rs 55 crores to Rs 96 crores. 

The recent investor presentations of the company emphasise its expansion activities, i.e., expansion of power manufacturing capacity in the Dubai facility by 20 percent, securing the largest tower supply order from the United States of America, and plans to expand the product portfolio at Vadodara cable plant for aluminum conductors. 

Moreover, the company maintains a positive outlook for its ‘Transmission & Distribution’ (T&D) business with a robust tender pipeline and record order book. The company also expects to maintain an overall guidance on its revenues of Rs.20,000 crores.

According to the latest shareholding pattern data available for the December 2023 quarter, the company’s Promoters hold a 51.88 percent stake, and the Foreign Institutional Investors (FIIs), recently reducing their stake, currently hold a considerable stake of 10.9 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 power transmission & distribution, railway construction, water resource management, cable manufacturing, and renewable energy sectors. 

Written by Amit Madnani 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.