Synopsis:
The shares of this construction company crashed 7 per cent after the management in its announcement said that Power Grid Corporation of India Limited (“PGCIL”) has excluded this company from participating in its tenders and taking contracts.
The company, which has a presence in the verticals of power transmission and distribution, railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables and also is the flagship company of the RPG Group, had its shares in the news today as the company announced its exclusion from participating in certain business activities imposed by PGCIL.
With the market cap of Rs 19,632 Crore, the shares of KEC International Ltd reached a low of Rs 724.60 compared to its previous day close of Rs 781.15, which is a fall of about 7 per cent in today’s intraday session. The shares are trading at a PE of 28.7, whereas its median PE is 40.
About the restrictions imposed
Power Grid Corporation of India Ltd (PGCIL) has informed the company that it will not be allowed to bid for new PGCIL tenders or receive fresh contract awards for the next nine months, starting November 18, 2025. The decision is linked to an earlier contractual issue disclosed in March this year.
The company also informed in its announcement that the restriction does not impact any of the company’s ongoing Power Grid projects, which will continue as planned. The company is now exploring its next steps, including legal options or requesting PGCIL to review the decision.
Even with this temporary exclusion, the company doesn’t expect any major hit to its business. Backed by a strong order book and a healthy pipeline of upcoming work from other clients, it believes the nine-month pause from PGCIL won’t significantly affect its operations or financial performance.
The restrictions come a few days after the company announces its new orders received worth Rs 1,016 crores across various businesses like civil, oil and gas pipelines, transmission and distribution and cable and conductors. The order also includes a maiden oil and gas contract in the Middle East.
The effects of this restriction will be found out later in the upcoming quarters, and PGCIL’s review of this decision might also change the direction of this ongoing case.
KEC International Ltd is part of the RPG Group, one of India’s fastest-growing business conglomerates, with a turnover of USD 5.2 billion. The group has diverse business interests spanning infrastructure, tyres, pharmaceuticals, information technology, speciality businesses, and emerging innovation-driven technology ventures.
“The company’s combined order book and L1 position has reached a record level of Rs 44,000 crore due to a strong focus on execution, a robust order book and a substantial tender pipeline. The company is well positioned to drive sustained and profitable growth in the coming quarters” – this was stated by the managing director and CEO of KEC International, showcasing a good track record for the company’s order intake.
Written by Leon Mendonca
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. Trade Brains Technologies Private Limited 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.
