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News Topical, Digital Desk : KEC International stock, which has been falling sharply in November following news of a trade dispute, is expected to see action in Monday's session. The company announced late Friday that it had received the largest order ever for its T&D business in India. The company's stock had been falling since mid-last month when Power Grid barred the company from participating in new tenders for nine months. The stock has since seen a sharp decline, although it has now stabilized at lower levels and closed with gains on Friday. Prior to the news of the ban, two brokerage houses had recommended investing in the stock.
What is the order information?
KEC International Ltd., a global infrastructure EPC company and a unit of the RPG Group, has announced that it has secured new orders worth ₹1,150 crore in its Transmission and Distribution (T&D) and Civil business in India. This includes the largest order ever secured by the T&D business in India. The BSE 500 index listed company's India T&D business has received its largest order ever from a reputed private sector company. This order includes the construction of a 765 kV transmission line and a 765/400 kV AIS substation. The Civil business has also secured an order for additional civil and structural works for a 150 MW thermal power plant from a leading private company. Commenting on these orders, the company's MD & CEO, Vimal Kejriwal, stated that with these orders, the company's order intake for the financial year so far has exceeded ₹18,000 crore, further strengthening the company's confidence in achieving its annual order intake target. Short-term pressure on the stock : On November 18th, the company announced that Power Grid Corporation of India had barred it from receiving new tenders and securing contracts for nine months, alleging "alleged violations of contract terms." However, after the stock fell, the company clarified that it had complied with all regulations and that the decision would not significantly impact the company, as Power Grid's share of the company's business is only around 4%. However, following the news, the stock saw a sharp decline, slipping from the 800 level to below 690. The stock's lowest level of the year was 605, which was recorded in April. Which brokerage firms have issued investment advice? In the second week of November, Prabhudas Lilladher and Motilal Oswal issued a buy recommendation on the stock. Prabhudas Lilladher upgraded the stock with a target price of 932. Motilal Oswal has set a target price of 920, implying a 35% gain in the stock.
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