Why KEC International Share Price is Rising

India's engineering sector has witnessed robust growth, driven by factors such as infrastructure development, industrialisation, and government initiatives. The sector plays a crucial role in the country's economic progress, providing employment opportunities and driving innovation.

The growing demand for infrastructure projects, coupled with government support, has created a favorable environment for engineering companies. This has led to increased business opportunities and expanded operations for players in the sector.

KEC International, a leading global player in the engineering, procurement, and construction (EPC) sector, has been at the forefront of this growth. The company offers a wide range of services, including power transmission, distribution, and renewable energy solutions.

Lately, KEC International has captured investor attention with its impressive stock performance.

The company's share price has surged by 5.9% in the past five days, prompting curiosity about the underlying factors driving this rally.

Huge Order Inflow

KEC International, part of the RPG Group, has recently experienced a significant rise in its share price, driven by strong order inflows in its Transmission and Distribution (T&D) business.

In the last week of August 2024, the company secured two major orders.

On 28 August 2024, KEC International received a new order worth Rs 11.7 billion (bn). Just a few days earlier, on 23 August 2024, the company secured another order valued at Rs 10.8 bn.

Take a detailed look at the order.

KEC International Last Week Order Win Details

Date	Order Value (Rs billion)	Region	Project Details
28-Aug-24	1.2	T&D	Secured orders for T&D projects in India, Middle East, and Americas.
23-Aug-24	1.1	T&D and Cables	Orders include 765 kV/400 kV transmission lines in India, T&D projects in Saudi Arabia, Oman, UAE, and cable supplies in India and overseas

Data Source: BSE Filings

These orders have contributed to KEC International's year-to-date order intake reaching approximately Rs 100 bn, reflecting an impressive 80% growth compared to the previous year.

This sustained inflow of large orders is boosting the company's share price for several reasons. First, the increased order book provides better revenue visibility, reducing risk and improving investor confidence.

Second, these orders are expected to enhance the company's profitability, leading to improved margins and stronger financial performance. Third, the ability to win large orders in competitive markets like the Middle East and Americas demonstrates KEC International's market leadership, further strengthening its position in the eyes of investors.

When a company secures such large orders, it signals strong demand for its services and products, which translates into future revenue growth and profit potential.

KEC International's recent order wins reflect its operational strength and ability to capitalise on emerging opportunities, driving positive market sentiment and boosting its share price.

What Next?

KEC International's future looks promising, driven by its strong order book and strategic focus on growth. The company has secured substantial orders, particularly in the Transmission & Distribution (T&D) sector, which will play a key role in driving revenue.

With a diversified portfolio across civil, renewables, and cables, KEC is well-positioned to capitalise on growth opportunities in various sectors.

The company's growth strategy includes expanding its presence in international markets, particularly in regions like the Middle East, Africa, and South Asia. Its continued investment in new technologies and infrastructure will further strengthen its competitive position.

Additionally, KEC is focusing on reducing debt and improving margins, which is expected to enhance profitability in the coming quarters.

KEC International is also focusing on growing its renewables business, with a keen interest in green energy projects such as solar, wind, and green hydrogen. This aligns with global trends toward sustainability and positions the company as a key player in the energy transition.

Additionally, its plans to spin off the cable business into subsidiaries will help sharpen the focus and allow optimal capital allocation, which could unlock further value for stakeholders.

The company's commitment to digital transformation through advanced tools like Building Information Modelling (BIM) and AI-driven systems will enhance efficiency and client satisfaction.

With a clear focus on execution excellence and strategic investments, KEC is poised to capture a significant share of the growing infrastructure market, both in India and internationally. The company's plans to raise capital through equity and non-convertible debentures will provide the necessary liquidity to fuel its expansion.

How KEC International Share Price has Performed Recently

In the past five days, KEC International share price has rallied 5.9%. In the last month, it is up 4.6%.

In 2024, so far its share price has surged 52.8% and it has rallied 40.1% in the last one year.

The stock touched its 52-week high of Rs 968.7 on 30 August 2024 and a 52-week low of Rs 551 on 8 November 2023.

About KEC International

KEC International is based in Mumbai. It is a major player in the engineering, procurement, and construction (EPC) sector, under the RPG Group.

The company operates in key infrastructure sectors such as power transmission and distribution, railways, civil, urban infrastructure, solar, smart infrastructure, oil and gas pipelines, and cables.

KEC International's capabilities cover the entire EPC value chain, from planning to project completion. The company has executed challenging projects in difficult environments, supported by its engineering, procurement, and project management expertise.

Its manufacturing facilities are located in India, Dubai, Brazil, and Mexico, allowing it to maintain a global supply chain across six continents and more than 105 countries.

With over 75 years of experience, KEC International has built a strong reputation in the EPC industry. The company focuses on customer satisfaction, quality, and safety in its operations. Its commitment to integrity and respect for people and the environment guides its corporate responsibility efforts.

To know more about the company, check out KEC International financial factsheet and its latest quarterly results.

For a sector overview, read our engineering sector report.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...