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Shares of KEC International zoomed 8 per cent to a high of Rs 674 in Monday's intra-day deals on healthy volumes on the BSE as the compay secured multiple contracts.
At 09:50 AM, the stock was trading 4.5 per cent higher at Rs 652 on volumes of around 37,000 shares as against the two-week average volume of around 13,000 shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.3 per cent at 65,133.
The RPG Group company in an exchange filing said it secured new orders worth Rs 1,007 crore across its various businesses, including its first order to build a Multispeciality Hospital in India, on design-build basis.
Among other contracts, the comany secured a substantial order for a 380 kV Overhead Transmission line project in the Middle East. The cables business secured orders for supply of various types of cables in India and overseas.
Commenting on the new order wins, Vimal Kejriwal, MD & CEO, KEC International said "We are pleased with the continuous inflow of orders, especially in our T&D and Civil businesses. In line with our strategy, the civil business has expanded its presence by securing a breakthrough order for building a Multispeciality Hospital in Eastern India.".
"The T&D order in the Middle East region has significantly enhanced our order book in the international T&D market. With the above orders, our YTD (Year-Till-Date) order intake stands at a record level of over Rs 5,500 crore, a strong growth of around 15 per cent vis-à-vis last year", Vimal Kejriwal said in the release.
For the recently concluded quarter, the company's Q1 consolidated net profit grew 36.5 per cent to Rs 42.33 crore when compared with Rs 31.02 crore in Q1FY23. Total income increased by 27.7 per cent to Rs 4,246.42 crore from Rs 3,326.03 crore.
Brokerage firm Prabhudas Lilladher in the post results note, said that KEC International Q1FY24 earnings Beat its topline and EBITDA margin expectations. However, higher interest cost weighed on the profitability.
The brokerage firm maintained its 'Accumulate' rating on stock for a target price of Rs 578.
Meanwhile, Centrum Broking has a 'ADD' rating on the stock, with a revised target price of Rs 660.
We expect KEC International to report revenue CAGR of 17 per cent and EPS CAGR of 145 per cent on a low base (FY21-25E CAGR of 18% on normalized base). Robust tender pipeline, strong execution capabilities and normalization of margin profile/NWC will support valuation, the brokerage firm said in its result update.
