KEC International shares leap 11% today; zoom 26% in 4 days on order win

KEC International share price: Despite the four-day rally, KEC International stock remains a wealth eroder for calendar year 2025

KEC International share price continued its upward momentum for a fourth straight day on the BSE on Thursday, March 20, 2025. The stock surged 10.86 per cent in the intraday trade today, hitting a high of Rs 848 per share, and extending its four-day winning run to 26.11 per cent.

 

By comparison, the BSE Sensex was up 486 points (0.2 per cent) at 11:20 AM today, and has gained 2.9 per cent in four days. However, despite the four-day rally, KEC International stock remains a wealth eroder for calendar year 2025. Thus far in CY-25, KEC International share price has crashed 36.21 per cent on the BSE, underperforming the benchmark Sensex index, which is down around 3 per cent during the period.

 

Meanwhile, the ongoing rally in KEC International share price began after the company announced, over the weekend, that it has won multiple orders worth Rs 1,267 crore.

 

In a stock exchange filing on March 15, the RPG Group company said its Transmission & Distribution business has secured Comfort Letter for T&D projects in India and Americas, including 800 kV HVDC and 765 kV Transmission line orders from Power Grid Corporation of India Limited (PGCIL), and supply of towers, hardware, and poles in Americas.

 

Separately, its Cables business has secured orders for the supply of various types of cables and conductors in India and overseas. The amount of individual orders was not clarified by KEC International.

 

KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) company, operating in Power Transmission & Distribution, Civil, Transportation, Renewables, Oil & Gas Pipelines, and Cables sectors. The company is currently executing infrastructure projects in over 30 countries.

 

With the latest order win, the flagship company of the RPG Group's year-to-date (Y-T-D) order intake stands at over Rs 23,300 crore, surpassing the previous financial year's order book by 35 per cent for the same period.

 

In the October to December quarter of the current financial year (Q3FY25), KEC International reported a net profit of Rs 130 crore as against a profit of Rs 97 crore earned last year in the corresponding quarter (Q3FY24).

 

The company's revenue increased to Rs 5,349 crore from Rs 5,007 crore, while its Ebitda (earnings before interest, tax, depreciation, and amortisation) improved from Rs 308 crore to Rs 374 crore. KEC International's Q3FY25 Ebitda margin expanded to 7 per cent from 6.2 per cent.

 

"The outlook in all our major businesses remains optimistic. With a solid and diversified order book + L1 of over Rs 41,000 crore, improved execution visibility, benign cost environment and a substantial tender pipeline, we are well positioned to deliver sustained growth in the coming quarters," said Vimal Kejriwal, MD & CEO, KEC International Ltd.

 

That said, the scale-up in Railways and Civil segment was lower than expected, which also impacted its margin profile in Q3FY25. SAE Towers faced challenges of 20 per cent local currency depreciation. Thus, the management has cut its FY25 revenue growth guidance to 12-14 per cent (from 15 per cent).

 

"Factoring these growth and margin challenges as well as higher interest cost as percentage of sales, we cut our EPS by 20 per cent/14 per cent/10 per cent for FY25E/26E/27E and roll over valuation to FY27E. We retain 'Add' with a revised target of Rs 925 (vs. Rs 1,020 earlier) based on P/E of 18x FY27E EPS," said analysts at Centrum Broking in a post Q3 result report.

 

Those at HDFC Securities, too, maintained their 'Add' rating on KEC stock with a target price of Rs 963 per share.