KEC International share price jumped over 4% on Friday after the company secured new orders worth Rs 1,030 crore across various businesses.
The infrastructure EPC major said its Transmission & Distribution (T&D) business has secured orders for 400 kV Transmission line in Bhutan and an additional order for a 380 kV Transmission line in Saudi Arabia.
The vertical has also secured order for the supply of towers, hardware and poles in the Americas.
The renewables business of the company has secured an order for a 300+ MW Wind project from a renowned private developer in Southern India.
Also, Cables & Conductors segment received various orders in India and the overseas market, KEC International said in a regulatory filing on October 8.
Rating Upgrade
Kotak Institutional Equities upgraded its rating on KEC International to ‘Add' but cut the target price to Rs 400 from Rs 470 earlier. It also slashed FY2027-29 EPS estimates by 6-26%.
The brokerage firm believes KEC International is a key beneficiary of the domestic transmission buildout, given its strong execution track record and established T&D franchise.
KEC International share price has corrected over 60% in the past year, driven by weak margin performance in the non-T&D segments (civil and railways), slower execution in the water segment due to delayed payments, a seven-month debarment from participating in PCIL tenders and execution disruptions in the Middle East amid geopolitical tensions.
While the margin pressure is expected to persist over the next four quarters and models EBITDA margins of 6% through H2FY28 as legacy projects are executed, with a strong T&D opportunity pipeline across India and international markets, along with rising contribution from the cables business, should support a gradual recovery in execution and margins, said the brokerage firm.
Kotak Equities lowered its FY2027-29 estimates by 6-26%. For FY2027, it now factors in revenue growth of 10%, below management's guidance of 12-15%, reflecting continued uncertainties in the Middle East, and a 6% EBITDA margin due to delays in closing out legacy projects.
FY2028 and FY2029 estimates are cut by 11% and 6%, respectively, to reflect a slower margin recovery trajectory.
At 11:10 AM, KEC International share price was trading 1.03% higher at Rs 353.45 apiece on the BSE.
ALSO READ: Catch Stock Market Live Updates Here
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.