Shares of KEC International, the flagship company of the RPG Group, gained 5% during Thursday's intraday trade after the company secured new orders of ₹1,042 crore across its various businesses.
In an exchange filing on Wednesday, the company announced that its railway business has secured its maiden international order for a Signaling & Telecommunication project in SAARC.
Under its civil business, the company received an order in the Metals & Mining segment from a reputed steel player in India. Further, the company bagged orders for T&D projects in India, the Middle East, Europe, and America.
Additionally, the company won orders for various types of cables in both India and overseas under its cables segment.
Commenting on the order wins, Vimal Kejriwal, MD & CEO of KEC International Ltd., said, "We are pleased with the new order wins secured across our business verticals. The Railway business has successfully expanded its footprint internationally, leveraging the strong presence of our T&D business. The Civil business continues to strengthen its order book in the industrial segment with the addition of a very reputed client. The maiden tower supply order from Europe is a testament of our dedicated focus on diversifying the tower sales business geographically."
In response to the positive development, the shares opened strongly at ₹592 apiece in today's session and rose further to record an all-time high of ₹603.80, up by 5% from their previous closing price of ₹575.50 apiece.
The company's shares have been performing exceptionally well for the last two months, driven by robust order wins coupled with decent performance in Q4FY23. From its April 2023 low of ₹451, the stock has zoomed 31% to date. At current levels, the stock is trading 53% higher than its 52-week low of ₹386.5 apiece.
Meanwhile, brokerage firm HDFC Securities, in its recent note, has maintained its 'reduce' rating on the stock, citing a rich valuation, a debt-heavy balance sheet, elevated working capital, and weak profitability.
However, the brokerage revised its target price upwards to ₹433 apiece from the previous target price of ₹400 apiece.
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, Solar, Smart Infrastructure, Oil & Gas Pipelines, and Cables.
According to the company's latest update, as of the end of FY23, its order book stood at ₹30,553 crore, representing a YoY growth of 29%. Additionally, the company announced that it has been awarded the lowest bidder (L1) status for additional contracts worth over Rs. 3,500 crore.
20 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
