KEC International Shares In Focus On Winning Orders Worth Rs 1,050 Crore

The shares of KEC International Ltd. saw recovery on Thursday after it secured new orders worth Rs 1,050 crore across various businesses.

The renewables business won an order of over 100 MW Wind Project- Balance of Plant package. The order was won in the Sothern India from a renowned private developer, the company said in an exchange filing on Thursday.

In the civil business, the company secured an order in the Buildings and Factories segment from an existing client for the execution of s downstream project in Western India. The company further won orders for its transmission and distribution business' for the supply of towers. hardware and poles in the America.

The cables and conductors business also secured orders for the supply of various types of cables and conductors in India and overseas.

Delhi High Court in the last month has kept in suspension Power Grid Corporation of India Ltd.’s order barring KEC International Ltd. from bidding for its projects for nine months, allowing the company to continue participating in ongoing tenders, including those floated by the state-owned transmission utility.

The relief comes after Power Grid, on Nov. 18, excluded KEC International from participating in its tenders and awarding contracts for alleged transgression of contractual provisions related to an earlier matter.

The Mumbai-based engineering and infrastructure firm clarified that the restriction has “no bearing” on execution of existing projects and does not foresee any material impact on its operations or financial position.

The court’s decision ensures KEC can continue bidding for ongoing projects, including those of Power Grid, while the matter remains under judicial review.

The scrip reversing the earlier losses rose as much as 0.81% to Rs 743.90 apiece on Thursday, the highest level since Dec. 24. It pared gains to trade 0.03% higher at Rs 738.15 apiece, as of 12:36 p.m. This compares to a 0.07% advance in the NSE Nifty 50 Index.

It has fallen 38.53% in the last 12 months. Total traded volume so far in the day stood at 0.61 times its 30-day average. The relative strength index was at 73.58, indicating it was overbought.

Out of 27 analysts tracking the company, 22 maintain a 'buy' rating, four recommend a 'hold,' and one suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target stands at Rs 931.36 indicating an upside of 26.2%.