Shares of an RPG Group company gained nearly 5 percent to reach an intraday high of ₹ 603.80 apiece on the National Stock Exchange (NSE), after it received new orders worth ₹ 1,042 crores. At 12:20 Pm, its shares were trading at ₹ 597.05 apiece.
In an exchange filing, KEC International, a global infrastructure EPC major, said that it has secured new orders worth ₹ 1042 crores across its various businesses.
According to an exchange filing, its railway division has secured its maiden international order for a Signaling & Telecommunication project in SAARC. Its Civil division has secured an order in the metals & mining segment from a reputed steel player in India. Further, its Transmission and Distribution business has secured orders for projects in India, the Middle East and the Americas. Moreover, its Cables business has secured orders for the supply of various types of cables in India and overseas.
Vimal Kejriwal, MD & CEO, of KEC International, said that the company’s Railway business has successfully expanded its footprint internationally, leveraging the strong presence of its T&D business. Its Civil business continues to strengthen its order book in the industrial segment by adding a very reputable client. He added that the maiden tower supply order from Europe is a testament to the company’s dedicated focus on diversifying the tower sales business geographically.
KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has a presence in the verticals of Power Transmission and Distribution, Railways, Civil, Urban Infrastructure, Tyres, Pharma IT and Speciality as well as in emerging innovation-led technology businesses.
With a market capitalization of ₹ 14,795 crores, KEC International is a small-cap company. It has a low return on equity of 4.76 percent but an ideal debt-to-equity ratio of 0.90. Its shares were trading at a price-to-earnings ratio (P/E) of 84.01, which is significantly higher than the industry P/E of 8.24, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 51.88 percent stake in it, followed by mutual funds with 23.24 percent, foreign institutions with 12.60 percent, retail investors with 10.22 percent and other domestic institutions with 2.06 percent.
Written by Simran Bafna
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