This Microcap stock which operates in the Engineering, Procurement, and Construction business hit a 10 percent upper circuit after the company’s JV agreement with Josts Engineering for EPC and Renewable business.
Price Action
With a market capitalization of Rs. 361.30 Crores, the shares of Kay Cee Energy & Infra Limited were up by 10 percent in the day’s trade touching a day’s high of Rs. 329.65 per share. The stock stayed in the upper circuit limit which is 10 percent higher than the previous closing price of Rs. 299.70 apiece. The stock has delivered a return of 31 percent, outperforming the Nifty Index on a YTD basis.
On the back of the news, Jost’s Engineering is also up by 13 percent in the opening trade on Tuesday and the stock reiterated and was trading at Rs. 544 per share which is 4.74 percent higher than the previous closing price of 519.40 per share.
What Happened
The company has entered into a Joint Venture (JV) agreement with Josts Engineering to set up a new company named “Suryavayu Renewable and Energy Solutions Private Limited” on 9th December 2024. This JV is incorporated to execute EPC projects in the Power Sector and conduct business in the Renewable Sector. This venture shareholding would be 50:50 between Kay Cee and Josts with 25,000 equity shares for each. This JV focuses on the Domestic market and the companies will pay Rs. 2.5 lakh for the 50% of JV.
About the Company
Kay Cee Energy & Infra Limited was established in 2015. They specialize in engineering, procurement, and construction (EPC) services for power transmission and distribution systems. The company focuses on projects involving Extra High Voltage infrastructure, serving both government entities and private sector clients.
With a robust backlog order book valued at approximately Rs. 520 crore as of 31st October 2024, Kay Cee Energy is engaged in multiple projects that include substation construction and automation. Their business model focuses on technical expertise, timely project execution, and strong client relationships while positioning themselves to capitalize on India’s growing energy demands and infrastructure development needs.
Financials & Ratios
Its Revenue from operations grew by 57 percent year on year from Rs. 24.13 Crores in H1FY24 to Rs. 37.86 Crores in H1FY25, accompanied by a profit of Rs. 2.79 Crores to a profit of Rs. 5 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 21.28 percent and the return on equity (RoE) stood at 19.61 percent. The net profit margin stood at 10.16 percent and the debt-to-equity ratio stood at 0.74 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 70.40 percent in Kay Cee Energy & Infra and public holdings standing at 29.60 percent.
Written by Santhosh S
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