Stock Performance
On Wednesday, KEC International’s shares surged by 19.5%, reaching a 52-week high of Rs 1,312 per share from its previous close of Rs 1,098.30. By the closing bell, the stock was trading at Rs 1,250.65, up 13.87%, with a trading volume spiking 4.15 times.
This remarkable rise comes as no surprise for long-term investors, as the stock has delivered multibagger returns of over 100% from its 52-week low of Rs 586 and an astounding 1,100% growth over the past decade.
Business Overview
KEC International Ltd, the flagship company of the RPG Group, is a global Engineering, Procurement, and Construction (EPC) giant. The company operates in diverse verticals, including:
- Power Transmission & Distribution
- Railways
- Urban Infrastructure
- Solar Projects
- Oil & Gas Pipelines
- Cables
With a presence in over 110 countries, the company is executing critical infrastructure projects in more than 30 nations.
Recent Developments and Order Book
KEC International has secured significant contracts worth Rs 2,744 crore in its Transmission and Distribution (T&D) business. Key highlights include:
International Orders: Rs 1,040 crore for supplying towers, hardware, and poles to the Americas and constructing 220 kV transmission lines in the CIS region.
Domestic Orders: Rs 1,704 crore turnkey contracts from Power Grid Corporation of India Limited (PGCIL) for designing, supplying, and installing 765 kV transmission lines and GIS substations.
The company’s current order book stands at Rs 42,500 crore, including L1 orders, with a pipeline of tenders under evaluation exceeding Rs 1,50,000 crore.
Financial Performance and Market Cap
KEC International has a market cap of over Rs 33,000 crore, reflecting its strong position in the mid-cap segment. The company has maintained a healthy dividend payout ratio of 35%, further enhancing its appeal to investors.
Quarterly Results (Q2FY25):
Robust revenue growth backed by large-scale project executions.
Improved margins across all verticals.
Institutional Interest
Institutional investors have increased their stakes:
FIIs: From 12.66% in June 2024 to 13.14% in September 2024.
DIIs: From 25.29% in June 2024 to 26.73% in September 2024.
This indicates growing confidence among major financial institutions
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult your financial advisor before making investment decisions.