KEC International Ltd. shares saw a slight increase on Wednesday after the company released its first quarter (April-June) results for the current fiscal year. The company's profit witnessed a significant jump of over 42 percent, increasing the interest of investors and market analysts in the stock.
The company has also recently received new orders worth approximately ₹1500 crore, further strengthening its business base. Despite this positive signal in the market, brokerage firms do not appear to be completely enthusiastic yet.
Significant Jump in Quarterly Profit
KEC International recorded a net profit of ₹124.60 crore between April and June 2025, which is 42.26 percent higher compared to the same period last year. The company's b order book and improvements made at the operating level played a significant role in this growth.
The balance between the company's revenue and expenses appears to be improving, leading to an improvement in operating margin.
Announcement of New Orders Worth ₹1509 Crore
Along with the quarterly results, the company also informed that it has received orders totaling ₹1509 crore in its various business segments. These orders have been received from sectors related to Transmission & Distribution, Cables, Civil Infrastructure, and Railways.
This new order is expected to pave the way for increased future revenue for the company, creating a positive environment in the market.
Slight Increase in Shares, Rose in Early Trade
As soon as the market opened on Wednesday, the company's shares registered a gain of about 1 percent. On the BSE, the share was seen trading around ₹860, which was slightly above the previous closing price.
However, the movement of the share was not very aggressive, as investors are waiting to see the actual impact of the new orders and profits in the coming days.
Antic Broking's Analysis
Antic Broking has maintained its 'Hold' rating on KEC International. However, they have increased the target price of the share from ₹919 to ₹954.
The brokerage believes that the company will benefit in the future from the improvement in operating margins, better working capital situation, and SAE unit turning profitable.
However, they also added that the market has already taken all these positive aspects into account and these things are included in the current price.
Nuvama's Report
Nuvama Institutional Equities has also maintained its rating at 'Hold' but reduced the target price from ₹994 to ₹983.
They estimate that the company's share can go up by about 14 percent from the current level.
Motilal Oswal's Opinion
Motilal Oswal has also given a 'Neutral' rating to the company and kept the target price at ₹950.
The brokerage firm says that the company's shares are still trading at a PE multiple of 24.7x, 19.4x and 16.1x based on the estimated earnings from FY26 to FY28.
They believe that an annual growth of 18 percent in the company's revenue is possible in the next three years and the EBITDA margin can remain around 8.1 percent.
Key Business-Related Signals
Talking about the growth of KEC International, the company's main business is related to Transmission & Distribution, but in recent years it has also established its hold in other sectors like Railways, Civil Infrastructure and Cables.
New orders have also come from these diverse sectors, which indicate that the company's business base is getting ber.
At the same time, the SAE Towers unit, which was earlier in loss, has now become profitable. This can also benefit the company in international business.
