KEC International share price rises 5% to 1- year high on ₹1423 crore T&D order from Saudi Arabia

Stock Market Today: KEC International share price gained more than 5% to scale 1- year high on ₹1423 crore Transmission and Distribution order from Saudi Arabia.

KEC International Share price opened at ₹1036.05 on Friday on the BSE, around 7.75 higher than previous day closing price of ₹989. The KEC International share price thereafter gained to touch its 52-week high mark (1-year high). KEC International share price having risen 68% year to date has given phenomenal returns to investors.

The a global infrastructure EPC major, and RPG group company, KEC International Ltd. in its release on Friday post market hours said that it has secured new orders of Rs. 1,423 crores for Design, Supply and Installation of 380 kV (kilo Volt) Transmission Lines in Saudi Arabia.

We are happy with the continuous inflow of orders, especially in our T&D business" said Vimal Kejriwal, MD & CEO, KEC International Ltd, i a statement. These orders in Saudi Arabia along with the earlier orders in UAE and Oman have further reinforced our leadership in the Middle East and substantially enhanced our international T&D order book, he added.

With these orders, KEC International year to date order intake stands at over ₹11,300 crores, which is an impressive growth of ~75% compared to last year.

A few days back KEC had announced orders worth f Rs. 1,171 crores and Rs. 1,079 crores in Transmission & Distribution (T&D) and Cables businesses, from Middle east, India and America.

While the former was pertaining to 400 kV Transmission line in the United Arab Emirates (UAE) and 380 kV Transmission line in Saudi Arabia. The later was 765 kV/ 400 kV Transmission lines order from a reputed private developer in India, 230/132 kV Transmission line orders in Saudi Arabia and Oman, Upgradation of an existing 400 kV Transmission Line in the United Arab Emirates (UAE) and Supply of towers, hardware and poles in Americas.

Improving outlook

All this has boosted revenue visibility significantly. Analysts at Emkay Global said that KEC’s robust order inflows provide a strong base for attaining management’s FY25 inflow guidance of Rs25000 Crore.

With an all-time high order backlog, coupled with a substantial tender pipeline of Rs1.5 trillion, KEC as per Emkay Global, is well-positioned to log sustained growth in coming years. Board of Directors also have approved fundraise of ~Rs6000 crore (QIP/NCD: Rs4500 crore/Rs1500 crore) toward exploring organic/inorganic growth prospects within existing/new verticals, which remains a key monitorable as per Emkay

Emkay's revenue, Ebitda and net profit CAGR (compound annual growth rate) for FY24-27 estimates stand at 14%, 31% and 64%, respectively. They have ADD rating on the stock.

`Emkay believes that bifurcating the cables business will lead to value unlocking and optimal capital allocation, potentially leading to a re-rating of the segment post-demerger within the next 3-6 months.

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