Rs 42,000 crore order book and FIIs & DIIs increase stake: This cable company incorporates a new subsidiary for expansion of business; Details inside
The stock is up by 92.5 per cent from its 52-week low of Rs 551 per share and gave multibagger returns of 900 per cent in a decade.
KEC International Limited informed that KEC Asian Cables Limited, a subsidiary of KEC International Limited, was incorporated on October 1, 2024. This incorporation is in line with the Company's previously announced plans for subsidiaries in its cable business.
The cable subsidiary has an authorized capital of Rs 10 crore and a subscribed capital of Rs 10 lakh. KEC International Limited holds a 95 per cent stake in the subsidiary, while KEC Power India Private Limited, a wholly-owned subsidiary of KEC International Limited, holds the remaining 5%. The Cable Subsidiary will primarily focus on manufacturing various types of power cables, solar cables, aluminium conductors and fibre optic cables.
Earlier, the has secured new orders of Rs 1,003 crores across its various businesses. The company has won an order for a tunnel ventilation system and associated works in India under its railways business. Additionally, its civil business has bagged an order for civil and mechanical works for a steel plant in India. Furthermore, the company's cables business has secured orders for the supply of various types of cables in both India and overseas.
About the Company
On Tuesday, shares of KEC International Ltd gained 2.25 per cent to an intraday high of Rs 1,060.65 per share from its previous closing of Rs 1.037.25 per share. The stock’s 52-week high is Rs 1,067.25 while its 52-week low is Rs 551.
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KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has a presence in the verticals of power transmission and distribution, railways, civil, urban infrastructure, solar, oil & gas pipelines and cables. The company is currently executing infrastructure projects in 30+ countries and has a footprint in 110+ countries (including EPC, supply of towers and cables). It is the flagship Company of the RPG Group. RPG Enterprises, established in 1979, is one of India’s fastest-growing business groups with a turnover of USD 4.8 Billion. The group has diverse business interests in the areas of infrastructure, tyres, pharma, it and speciality as well as in emerging innovation-led technology businesses.
KEC International Ltd had a market cap of over Rs 27,900 crore and has been maintaining a healthy dividend payout of 35 per cent. The company reported amazing numbers in its Quarterly Results (Q1FY25) and annual results (FY24). The company’s current order book stands at Rs 42,000 crore including the L1 orders as of June 30, 2024. Tenders under evaluation and in the pipeline of over Rs 1,50,000 crore.
As of September 2024, FIIs & DIIs have increased their stake to 13.14 per cent and 26.73 per cent respectively compared to 12.66 per cent and 25.29 per cent respectively in June 2024. The stock is up by 92.5 per cent from its 52-week low of Rs 551 per share and gave multibagger returns of 900 per cent in a decade. Investors should keep an eye on this mid-cap company for upcoming trading sessions.
Disclaimer: The article is for informational purposes only and not investment advice.