A power stock recently in focus, following its Q3 results, boasts a strong order book of Rs 37,440 crore. Despite this robust backlog, its market capitalization stands at Rs 20,600 crore, reflecting a notable gap between its order potential and current market valuation, attracting investor attention.
Share Price
The shares of K E C International Limited are currently trading at Rs. 769.95 down by 3.1% from its previous close of Rs. 794.55 as of February 04, 2025. The stock touched an intraday high of Rs. 838 before wiping out all its gain and turning red.
Q3 Results
The company reported a strong Q3 FY25 performance with revenue growth of 8%, reaching Rs 4,758 crore compared to Rs 4,398 crore in Q3 FY24. This increase in revenue reflects the company’s robust operational performance across various sectors. The 8% YoY growth indicates steady demand and efficient project execution.
EBITDA for Q3 FY25 rose 33% YoY, amounting to Rs 281 crore, up from Rs 211 crore in Q3 FY24. This impressive growth in EBITDA reflects improved operational efficiency and cost management. The EBITDA margin expanded by 1.1 percentage points (110 bps), increasing to 5.9% from 4.8% in the previous year.
Furthermore, the company’s PAT saw a remarkable 65% YoY increase, reaching Rs 73 crore from Rs 44 crore. This surge in profitability highlights the company’s successful strategy and its ability to translate revenue growth into bottom-line expansion.
Order Intake Analysis
The company achieved an impressive order intake of Rs 22,090 Cr with a substantial growth of 72%. T&D (Transmission & Distribution) dominates with a 72% share, while Civil, Transportation, and Renewables each contribute 10%, 10%, and 4% respectively. The domestic market accounts for 55% of orders, with international business at 45%.
Order Book Composition
The order book stands strong at Rs 37,440 Cr, showing a healthy growth of 24%. T&D continues to lead with a 59% share, followed by Civil at 25% and Transportation at 11%. The order book shows a stronger domestic focus with a 67% share compared to 33% international business.
Business Outlook
The company demonstrates robust business momentum with an order book plus L1 position exceeding Rs 41,000 Crore. The future pipeline appears promising with tenders under evaluation worth over Rs 1,50,000 Crore. Notable is the increased T&D share in both intake (62%) and order book (54%), indicating strong sector performance.
Market Cap vs. Order Book
Despite the sizable order book, the company’s market capitalization stands at Rs. 20,600 crore, which is lower than its order book value. This discrepancy suggests that the market may not yet fully value the future revenue potential or projects in the order pipeline, presenting potential growth opportunities for investors.
About the Company
KEC International is a leading global infrastructure EPC (Engineering, Procurement, and Construction) company and a flagship of the RPG Group. The company has a strong presence across diverse sectors, including Power Transmission and Distribution, Railways, Civil and urban Infrastructure, Solar, Oil & Gas Pipelines, and Cables.
With its extensive expertise and vast portfolio, KEC International is well-positioned to cater to the growing demand for infrastructure development, both domestically and internationally, driving sustainable growth and innovation in key industries.
Written By: Dipangshu Kundu
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