KEC International hits upper circuit but fails to hold on to it

Global EPC major KEC International jumped 5% percent on Tuesday, October 4 after it secured new orders worth Rs. 1,407 crores for T&D projects in Middle- East. The stock has intraday upper circuit of ₹469 per share.

During Tuesday's trade, the stock opened at Rs. 469 as against from the previous close of ₹447.70 but failed to hold on to this rally due to weak market sentiment and currently trading around ₹451.55, up by 0.86 percent on the NSE at 11 a.m.

On Monday, KEC International, a global infrastructure engineering, procurement and construction (EPC) major, said that it has bagged new orders worth ₹1,407 crore across its various businesses.

The RPG group company’s transmission and distribution (T&D) business has secured orders for T&D and Cabling projects in Middle East. Its railways business has also secured an order for signaling & telecommunication works of Train Collision Avoidance System (TCAS) under ‘Kavach’ in consortium in India, the company stated.

The civil business has secured an order for the construction of official quarters and associated facilities for senior government officials in India. The company further reported that the cables business has secured orders for various types of cables in India and overseas, the company said.

After reaching a 52-week high of ₹550 on October 26, 2021, the stock began to fall and remained in the same trend till June of this year, dropping 34%. However, the stock has seen a surge in buying since July, rising 24.25% to date. Nonetheless, it is 18% lower than its 52-week high.

KEC International Ltd., established in 2005, is a mid-cap company with a market capitalisation of Rs. 11,509.85 crore operating in the power sector. As of the most recent trading session, the stock has a three-year return of 69.01percent, compared to the Nifty Midcap 100's performance of 95.15 percent.

The firm recorded a consolidated total income of ₹3,326.03 Crore for the quarter ended June 30, 2022, up 30.86 percent from the same quarter last year and down 22.26 percent from the previous quarter's total income of ₹4,278.17 Crore. In the most recent quarter, the company achieved net profit after tax of ₹31.02 crore.

KEC is an engineering, procurement, and construction (EPC) major, that primarily deals in power transmission and distribution, railways, civil, urban Infrastructure, solar, smart infrastructure, oil & gas pipelines, and cables, the company website shows.

A MintGenie poll of 21 analysts have a 'buy' call on the stock.