KEC International, a prominent player in the engineering, procurement, and construction (EPC) sector, saw its shares soar over 3% early on September 6, reaching a 52-week high of ₹1,039 each. This surge followed the exciting announcement that the company has secured a substantial new order.
The contract, worth ₹1,423 crore, involves the design, supply, and installation of 380 kV transmission lines in Saudi Arabia, highlighting the company's expanding global footprint and expertise.
Understanding the impact of new orders
At 9:18 am, the shares of KEC International were trading at ₹1,022.95 on the Bombay Stock Exchange (BSE), up by ₹33.95 or 3.43%. The spike in share price is a direct reflection of investor confidence boosted by the company's latest achievements.
Vimal Kejriwal, the MD & CEO of KEC International, expressed satisfaction with the continuous order inflow, particularly in the Transmission & Distribution (T&D) sector. "These orders in Saudi Arabia, along with earlier ones in UAE and Oman, have not only reinforced our leadership in the Middle East but also significantly expanded our international T&D order book," he stated.
Year-to-date growth: A sign to invest in stocks
The company's year-to-date (YTD) order intake has surpassed ₹11,300 crores, marking an impressive growth of approximately 75% compared to the previous year. This robust increase in orders is a crucial indicator for investors considering where to invest in stocks. It underscores the company's strong market position and operational success, which could lead to sustained financial performance and potentially higher stock prices in the future.
Analysing the financial health and future prospects
For the quarter ending in June, KEC International reported a net profit of ₹87.6 crore, more than doubling the ₹42 crore recorded in the same quarter last year. This significant increase in profits reflects the company's efficient management and strategic execution of projects.
In addition to the recent contract wins, last month, KEC International secured additional T&D and cables orders worth ₹1,171 crore, which included projects like a 400 kV transmission line in the UAE and a 380 kV line in Saudi Arabia. The company also bagged new orders totalling ₹1,079 crore in its T&D and cables businesses, bolstering its order book and financial stability.
A strategic time to invest in stocks
KEC International's consistent growth in orders, robust financial performance, and expanding international presence make it a compelling option for investors looking to invest in stocks. As the company continues to secure significant contracts and strengthen its market position, now could be an opportune time for investors to consider KEC International as a potential addition to their investment portfolio.
The company's performance not only reflects its success but also signals strength in the broader EPC sector, which could be beneficial for diversified investment strategies.
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