KEC International shares hit 52-week low despite Rs 1,006 crore order wins

Shares of KEC International slid to a fresh 52-week low on Friday, 23 October, even as the RPG Group infrastructure company announced new orders worth Rs 1,006 crore. The stock has now been falling for several sessions in a row, and the latest contract wins did little to lift sentiment.

The company disclosed the orders to the stock exchanges around midday on Friday. It was the third such announcement in roughly two weeks, after order wins of about Rs 1,030 crore on 9 October and Rs 1,014 crore on 10 October, according to EquityPandit.

What the new orders cover

The largest chunk is in the company’s transmission and distribution (T&D) business. KEC has won a contract for a 400 kV transmission line in Oman and orders to supply towers, hardware and poles in the Americas, Angel One reported.

Its civil business has secured a repeat order from a healthcare group in eastern India to build a multispeciality hospital. The cables and conductors unit has also picked up orders in India and overseas, though the company did not give separate values.

CEO Vimal Kejriwal said the Oman contract strengthens KEC’s position in the Middle East’s T&D market. With these wins, the company says its order intake for the financial year so far has crossed Rs 10,600 crore.

Shares hit a new low

The order news did not stop the slide. MarketsMojo reported that the stock touched Rs 320 in morning trade, a new 52-week low, marking a sixth straight session of losses with a cumulative fall of about 11 per cent. EquityPandit said it dipped as low as Rs 317.25 later in the day. Around 1.30 pm, the shares were trading near Rs 322, about 3 per cent lower than Thursday’s close of Rs 331.95.

The fall is part of a much longer downtrend. The stock was down about 19 per cent over the past month and more than 60 per cent over the past year, according to data cited by EquityPandit, which put the company’s market value at roughly Rs 8,600 crore. Its 52-week high was Rs 858.80.

Why investors remain cautious

Much of the pressure dates back to KEC’s first-quarter results for FY27, announced in August. Business Today reported that consolidated net profit fell 42 per cent year-on-year to Rs 73 crore, while revenue was flat at about Rs 5,024 crore and the EBITDA margin narrowed to 5.8 per cent.

The company blamed disruptions in the Middle East, which accounts for about a quarter of its order book. Higher freight, insurance and fuel costs and shipping route problems slowed project execution, and about Rs 300 crore of revenue was pushed out of the quarter. Management had warned that the pressure would continue into the July-September quarter, with a meaningful margin recovery only from the third quarter or later.

MarketsMojo also flagged weak interest coverage and slower collections from customers as concerns, alongside bearish technical indicators.

The company’s July-September quarter results will be the next major test of whether its strong order inflow is turning into better profits. The broader market was also weak on Friday, with the Nifty 50 ending about 0.6 per cent lower, according to EquityPandit.

This article is for information only and is not investment advice.

Sources

• Angel One: KEC International Share Price in Focus; Wins Rs 1,006 Crore Worth New Orders
• EquityPandit: KEC International Wins Rs 1,006 Cr Orders but Shares Fall
• MarketsMojo: KEC International Ltd Falls to 52-Week Low of Rs 320 as Sell-Off Deepens
• Business Today: KEC International shares hit 52 week low, Q1 earnings hit stock sentiment