Shares of KEC International rise by 8%

KEC International witnessed an 8% surge in its shares, reaching Rs 674 during Monday's trading on the Bombay Stock Exchange (BSE) following the company's successful acquisition of new orders totalling Rs 1,007 crore. This includes a significant project involving the construction of a multi-specialty hospital.

The company disclosed in a regulatory filing on Friday that its civil business division had secured an order for the comprehensive design, engineering, procurement, and construction of a multi-specialty hospital situated in eastern India. Additionally, the transmission and distribution business secured an order for a 380 kV overhead transmission line project in the Middle East, while the cable business received orders from both domestic and international sources. In the first quarter of fiscal year 2024, KEC International reported a remarkable 36.5% year-on-year increase in consolidated profit, amounting to Rs 42.33, with a simultaneous 27.9% YoY rise in revenue, reaching Rs 4,244 crore. Despite this positive development, Trendlyne data suggests a downside of 1% from the current market prices, with the average target price for the stock set at Rs 650. The consensus recommendation from 23 analysts is a 'Hold.'

"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 these orders, our YTD (Year To Date) order intake stands at a record of over Rs 5,500 crore, registering a strong growth of 15% from last year," Vimal Kejriwal, Managing Director and Chief Executive Officer of KEC International said.

From a technical perspective, the stock's day Relative Strength Index (RSI 14) stands at 50.8. According to Trendlyne data, an RSI below 30 indicates oversold conditions, while above 70 signifies overbought conditions. The Moving Average Convergence Divergence (MACD) is recorded at 13.4, situated above its Center Line but below the signal line.

KEC International, recognized as a global infrastructure engineering, procurement, and construction (EPC) major, maintains a diverse presence in various sectors such as power transmission and distribution, railways, civil engineering, urban infrastructure, solar energy, oil & gas pipelines, and cables.