KEC International shares rise 10%, hit record high amid market crash; what's next?

Shares of KEC International Ltd, a global infrastructure EPC major, rose 10% to a record high amid a major crash in the global market today. KEC International shares climbed 10.19% to a fresh high of Rs 1074.95 in early deals against the previous close of Rs 975.50 on BSE. Market cap of the firm climbed to Rs 28,364 crore.

The civil construction stock has gained 144.45% in 2024 and risen 90% in a year. A total of 0.92 lakh shares of the firm changed hands amounting to a turnover of Rs 9.69 crore. 

KEC International shares have a beta of 1, indicating high volatility in a year.

In terms of technicals, the relative strength index (RSI) of the KEC International stock stands at 51.6, signaling it's trading neither in the overbought nor in the oversold zone.

The stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 200 day and 100 day moving averages. The stock fell to a 52 week low of Rs 551 on November 8, 2023. 

Net profit climbed 53% to Rs 85.4 crore in the Q2 against Rs 55.8 crore on a year-on-year basis. 

Revenue from operations climbed 13.7% to Rs 5,113.3 crore in Q2 compared to Rs 4,499 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA climbed 16.7% to Rs 320.2 crore in the last quarter over Rs 274.4 crore in the corresponding period in the previous fiscal.

Antique Broking has a price target of Rs 1075 for KEC International stock. 

"Improved operating margin profile coupled with improvement in working capital, SAE turning profitable, and business momentum looking robust across key business segments like the T&D segment, civil business, and the anticipated pick-up in railway capex augurs well for KEC. Given multiple drivers likely to drive strong earnings CAGR of 71% over FY24-27E, we increase our target multiple from 15x to 16x and maintain BUY with revised price target of Rs 1,075 (earlier 15x its FY27 EPS)," said the brokerage. 

AR Ramachandran, an Independent SEBI Research Analyst said, "KEC International stock price is bullish on the Daily charts with strong support at Rs 979. A Daily close above resistance of Rs 1040 could lead to a target of Rs 1150 in the near term."

KEC International is a global infrastructure engineering, procurement and construction (EPC) major. It has 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 plus countries and has a footprint in 110 plus countries (includes EPC, supply of towers and cables). It is the flagship company of the RPG Group.