Shares of this engineering company jumped around 6 percent in Wednesday’s trading session after bagging an order worth Rs. 4.93 crores from the Rajasthan Government. The stock made a stellar debut, listing at a 366.66 percent premium over the IPO price on January 5.
With a market capitalisation of Rs. 370 crores, the shares of Kay Cee Energy and Infra Ltd started Wednesday’s trading session on a lower note at Rs. 320 compared to its previous close of Rs. 213.20. During the trading session, the shares hit a high of Rs. 341.70, gaining around 6 percent and closed the day at Rs. 338 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had been awarded a contract from the Rajasthan Rajya Vidyut Prasaran Nigam Ltd.
The company received the order for the modification of 132 kV S/C line from 220 kV GSS Sanganer to 132 kV GSS Balawala, 132 kV XLPE cable system (3+1 spare cable) on 220kV D/C narrow base towers including detailed route survey, laying and installation of cable along with associated accessories and civil works for worth Rs. 4.93 crores and the contract has to be executed within 9 months.
Looking at the company’s financial statement, the revenue increased by 23 percent from Rs. 49.59 crores during FY21-22 to Rs. 61.09 crores in FY22-23. In addition, the net profits zoomed by 77 percent from Rs. 3.10 crores to Rs. 5.51 crores during the same timeframe.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 18.89 percent during FY 21-22 to 25.13 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 16.25 percent to 24.26 percent during the same timeframe. Furthermore, the net profit margin increased from 6.25 percent during FY21-22 to 9.01 percent during FY22-23.
Furthermore, in line with its vision for further integration, the company plans to diversify its business activities by manufacturing materials essential for EPC contracts. This includes line and substation hardware accessories, clamps, connectors, Bird Flight Diverters, Structures for Substation, Solar Plants, Electrical Panels, etc.
Kay Cee Energy and Infra operate as a third-party Engineering, Procurement, and Construction (EPC) service provider in the power transmission and distribution sector. The company focuses on the construction and commissioning of power infrastructure, offering a comprehensive suite of services to various government authorities and private entities.
Written By Vaibhav Patil
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