Rs 52,000.59 Lakh Order Book: Power Cable Company Executes a Joint Venture Agreement With Josts Engineering Company Ltd
The stock is up by 92.3 per cent from its 52-week low of Rs 171.40 per share.
Kay Cee Energy & Infra Limited (KayCee) has formed a strategic joint venture with Josts Engineering Company Limited. This collaborative effort has resulted in the incorporation of a new company, Suryavayu Renewable and Energy Solutions Private Limited. The joint venture, with an initial investment of Rs. 5,00,000, aims to capitalize on the growing demand for renewable energy solutions and infrastructure projects. Both companies will contribute equally to the venture, holding a 50 per cent stake each.
The primary focus of the joint venture is to secure and execute significant EPC projects in the power sector, particularly in the renewable energy domain. By combining their expertise and resources, KayCee and Josts aim to offer comprehensive solutions, including project financing, design, engineering, procurement, construction, and operation and maintenance services. The joint venture is poised to play a crucial role in India's transition to a sustainable energy future.
Earlier, the company secured a substantial contract from Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPNL) for the shifting and undergrounding of a 132kV Basni-NPH line traversing the AIIMS, Jodhpur campus. This project, valued at Rs 12.79 crores, involves detailed route surveys, cable installation, and civil works. This achievement builds on the company's strong performance in H1FY25, where it secured new orders exceeding Rs 110 crores. With a strategic focus on key sectors and a vision for geographical expansion, Kay Cee Energy & Infra is poised for continued growth.
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About the Company
Kay Cee Energy & Infra Ltd, a leading player in the power sector, specializes in EPC projects for transmission and distribution systems. Established in 2015, the company has a strong track record of working with government entities like RRVPNL. To further enhance its capabilities and reduce reliance on external suppliers, Kay Cee Energy & Infra Ltd is establishing its first manufacturing facility in Rajasthan. This strategic move will enable the company to manufacture key components for its EPC projects, ensuring greater control over quality, supply chain management, and project execution.
In its half-yearly results, the net sales increased by 58 per cent to Rs 3,835 lakh, EBITDA increased by 44 per cent to Rs 849 lakh and PAT increased by 79 per cent to Rs 500 lakh in H1FY25 compared to H1FY24.
As of September 30, 2024, the company's order book stands at a robust Rs 52,000.59 lakh. With a strong clientele base that includes prestigious organizations like Rajasthan Rajya Vidyut Prasaran Nigam Limited, Power Grid Corporation of India Limited and L&T, Kay Cee Energy & Infra Ltd is well-positioned to contribute significantly to the growth and development of India's power infrastructure. The company has a market cap of Rs 361.3 crore with a PE of 47x, an ROE of 21 per cent and an ROCE of 23 per cent. The stock is up by 92.3 per cent from its 52-week low of Rs 171.40 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.