KEC International shares rise 2%; here's why

Shares of KEC International rose over 2% in intraday trade on Friday after the EPC (engineering, procurement, and construction) company informed exchanges that it has secured new orders worth ₹1,004 crore across its various business segments. The RPG Group company has bagged orders across its transmission & distribution (T&D), civil, railways, and cables businesses. With these orders, the company’s year-to-date (YTD) order intake stands at ₹17,500 crore.

Early today, KEC International shares opened higher for the second straight session at ₹669.95, up 1% against the previous closing price of ₹663 on the BSE. Extending opening gains, the counter gained as much as 2.5% to hit an intraday high of ₹680, while the market capitalisation stood at ₹17,200 crore.

The share price of KEC International has risen 43% in the last one year. The counter touched its 52-week high of ₹769 on March 11, 2024, and its 52-week low of ₹443.25 on March 29, 2023.

In an exchange filing today, the Mumbai-headquartered infrastructure company says its T&D business secured projects in India and the U.S. In India, the order is for construction of transmission lines, substations and underground cabling, while its U.S orders include supply of towers, hardware and poles.

The company’s civil division has got an order for a residential project from a renowned real estate developer in India, while the railways vertical of KEC International has received an order in the semi high-speed rail for 2 x 25 kV overhead electrification (OHE) and associated works for speed upgradation under mission ‘Raftaar.’

Meanwhile, the cables business has secured maiden order for supply of power transmission conductors (ACSR and AL-59) from a reputed government utility. It has also won contract to supply various types of cables.

Vimal Kejriwal, MD & CEO, KEC International, says, “We are happy with the new order wins across our business verticals, especially the breakthrough order for supply of power transmission conductors. This accomplishment aligns with our strategy of backward integration and capitalising opportunities within the continuously growing demand for power transmission conductors globally.”

“The consistent inflow of orders in T&D has significantly bolstered our order book, particularly within India. Our Civil business has further widened its presence in the residential segment with the addition of an esteemed client. We are also enthused with the Railway order in the Semi High-Speed Rail under Mission ‘Raftaar,” adds Kejriwal.

Earlier this month, KEC International had informed exchanges that it bagged new orders of ₹2,257 crores across its various businesses, including T&D, oil & gas pipelines, civil, and cables. The company’s oil and gas pipelines business secured its first international contract for a pipeline laying project in Africa.

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