Posted on March 20, 2025, by Niftynews
Shares of KEC International soared 10.86% on Thursday, March 20, 2025, reaching ₹848 per share, marking the fourth consecutive day of gains. The KEC International share price has skyrocketed 26% over the past four days, driven by the announcement of an order worth ₹1,267 crore. Despite this positive momentum, KEC International stock remains a wealth eroder for investors in 2025. So, should you buy, sell, or hold KEC International stock amid this rally?
KEC International’s Order Win and Strong Momentum
KEC International recently secured significant orders in the Transmission & Distribution (T&D) sector, amounting to ₹1,267 crore. These include 800 kV HVDC and 765 kV Transmission line orders from Power Grid Corporation of India Ltd. (PGCIL), and additional tower supply orders from the Americas. The company also secured orders for various cables and conductors in both domestic and international markets.
This strong order win has propelled KEC International stock to new heights, but despite the rally, the stock is still down by 36.21% in CY2025, lagging behind the BSE Sensex, which is down around 3% during the same period.
Strong Order Intake and Quarterly Performance
For KEC International, the year-to-date (Y-T-D) order intake now stands at ₹23,300 crore, surpassing the previous financial year’s order book by 35% for the same period. This order book growth bodes well for the company’s future, and it has provided optimism to investors.
In its most recent quarter (Q3FY25), the company reported a net profit of ₹130 crore, up from ₹97 crore during the same period last year. Additionally, KEC International’s revenue increased to ₹5,349 crore, and its EBITDA improved from ₹308 crore to ₹374 crore.
While these results demonstrate solid growth, KEC International has revised its FY25 revenue growth guidance to 12-14% from the previous estimate of 15%, citing margin challenges in its Railways and Civil segments.
Analysts’ Outlook and Target Price for KEC International Shares
Despite the strong order book, analysts have downgraded their earnings per share (EPS) estimates for KEC International by 20% for FY25E, 14% for FY26E, and 10% for FY27E. These revisions reflect concerns over margin pressures and higher interest costs as a percentage of sales.
- Centrum Broking has revised its target price for KEC International stock to ₹925, down from ₹1,020, based on a P/E ratio of 18x FY27E EPS.
- HDFC Securities maintains an ‘Add’ rating with a revised target price of ₹963 per share.
These target prices reflect cautious optimism, indicating that while KEC International stock could benefit from the order wins and strong order book, there are still challenges ahead, particularly in the Railways and Civil sectors.
Should You Buy, Sell, or Hold KEC International Shares Now?
With KEC International’s shares up 26% in just four days, it’s important to evaluate whether the rally is sustainable. Here’s what analysts suggest:
- Buy: If you believe in the long-term growth prospects of KEC International, particularly with its solid order book and expanding presence in T&D and cables, this might be a good time to buy, but only if you’re prepared to hold through any potential short-term volatility.
- Sell: If you’ve already made profits from the recent rally, selling could lock in your gains, especially given the stock’s downward trend in 2025 and analysts’ reduced growth estimates.
- Hold: If you already own KEC International shares, holding the stock could be a reasonable choice. With a strong order pipeline and focus on diversifying business segments, the company remains well-positioned for recovery in the medium term.
Conclusion: What’s Next for KEC International Shares?
KEC International’s recent order wins and strong quarterly performance have sparked a rally, with shares up 26% over the last four days. However, the stock’s performance in 2025 has been disappointing, with a 36% drop year-to-date.
While analysts have cut their earnings projections, the company’s solid order book and optimistic outlook for the T&D sector provide some hope for future growth. Investors should keep an eye on KEC International as it navigates margin pressures and executes its large-scale projects.
