KEC International surges around 5% on Rs 1,108 cr-order win

Shares of KEC International on Wednesday have gained close to 5 per cent to its intra-day high of Rs 449.8 per share.

In the previous session, the stock closed at Rs 429.25 per share. Sharp gains in the stock come after the company bagged new orders worth Rs 1,108 crore across its various businesses.

T&D business has secured orders for T&D and cabling projects in India, Middle East and Africa. The railways business has secured orders in the technologically enabled and conventional/emerging segments in India. The company’s oil & gas business has secured an order for laying of cross-country pipeline and associated works in India.

ICICI Direct, the brokerage firm is bullish on the stock and is of the view that the railways business is witnessing a gradual uptick through orders in both conventional and new segments. Also, it has secured its maiden order in the prestigious TCAS segment under ‘Kavach’.

“T&D business has an expanded order book, especially the third order from PGCIL in quick succession. Also, order in oil & gas pipelines, further enhances KEC’s order book. New orders along with orders announced earlier during the year, will significantly contribute towards KEC’s growth in the domestic T&D markets”, it said.

CD Equisearch maintained a ‘hold’ on the stock for a target price of Rs 374, slashing the target price from the earlier Rs 514. The research firm maintained KEC International is a small cap entity with a m-cap of Rs 11,309 crore. The company is a heavy electrical equipment concern that is engaged in the construction of utility projects.

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