Shares of KEC International, a leading global infrastructure EPC (Engineering, Procurement, and Construction) player, are in the spotlight on Wednesday after the company announced securing new orders worth ₹1,136 crore. This news led to a positive market response, with the company’s stock rising by nearly 4% during early trade.
At 9:30 AM on the National Stock Exchange (NSE), KEC International shares were trading at ₹1,129.95, up 0.25% from the previous session’s close. Earlier, the stock saw a sharper jump of 3.93%, reaching ₹1,171.5 apiece. The surge in the stock price follows the company’s announcement about securing a significant order intake across multiple segments, including transmission and distribution (T&D), transportation, and oil and gas pipelines.
Order Wins Across Multiple Segments
The company’s announcement highlights that its Transmission and Distribution (T&D) segment has bagged a significant order for the construction of a 765 kV transmission line in India. This order has been awarded by Power Grid Corporation of India Limited (PGCIL), a state-owned enterprise and one of the leading entities in India’s power transmission sector. This order is a key win for KEC, as the transmission line would enhance the power grid infrastructure, contributing to India’s growing energy demand and supporting the government’s infrastructure development goals.
In addition to the transmission order, KEC International’s Transportation business won an important order in the Train Collision Avoidance System (TCAS) segment under the government’s Kavach initiative. Kavach is India’s indigenous train safety system aimed at reducing accidents and improving safety on railway tracks. This win not only strengthens KEC’s foothold in the railway sector but also positions it as a key player in India’s efforts to modernize its railway infrastructure.
Furthermore, KEC’s Oil and Gas pipeline business secured a Design, Supply, and Build (DSB) order for pipeline and related works from a leading Public Sector Undertaking (PSU) in India. This addition further diversifies the company’s portfolio, reinforcing its position as a major player in the EPC space across various industries.
Strong Market Reaction
The positive order flow has been well received by the market, reflecting investor confidence in the company’s growth prospects. The sharp initial jump in the stock price is a testament to the market’s favorable view of the company’s order book expansion and the potential for future revenue growth. This development comes at a time when infrastructure spending in India, particularly in the power and transportation sectors, is expected to remain robust, offering significant opportunities for EPC companies like KEC International.
The company’s diverse order wins across different segments—power transmission, railway safety systems, and oil and gas pipelines—illustrate its strength and capability in handling large-scale, multi-disciplinary projects. The fact that these orders have been secured from reputed and state-owned entities like PGCIL and major PSUs further adds credibility to the company’s project execution abilities and strengthens its reputation in the market.
Outlook for KEC International
KEC International’s order book continues to grow, and this latest development strengthens the company’s prospects for sustained growth in the coming quarters. The EPC sector, particularly in India, remains a promising space, driven by the government’s focus on infrastructure development, renewable energy, and transportation. KEC’s diverse offerings across the power, railways, and oil & gas sectors put it in a favorable position to capitalize on these trends.
As the company moves forward with executing these new orders, the market will likely keep a close eye on its quarterly results and execution progress. Investors will be keen to see how these new wins contribute to revenue and profitability growth, especially in light of ongoing challenges in the broader economy.
Commenting on new orders, Vimal Kejriwal, Managing Director and Chief Executive Officer of KEC International Ltd, said, “We are delighted with the multiple orders secured across our business verticals. The 765 kV order from PGCIL for evacuation of green energy has boosted our T&D order book in India. Our Transportation business has strengthened its presence in the growing TCAS segment under ‘Kavach’ to enhance the safety of Indian Railways with world class technology.”
“The oil and gas pipelines business has widened its footprint by securing its first order in the composite space (including design, supply and build). With these new orders, our YTD order intake has reached ₹20,600 crore, a growth of ~80% vis-a-vis last year,” he added.
