The sharp rise in shares has come about as investors are enthused about the diversification plans of the company, which has been among the market leaders in the power transmission and distribution (T&D) business. Investors hope that KEC’s foray into railways and civil construction, along with greater focus on international markets for power T&D, may help deal with challenges of a slowdown in the domestic power segment. The company’s order book of ₹20,307 crore at the end of FY19 was 17% higher than the previous year. The order book has grown by 29% between FY14 and FY18 with strong contribution from overseas regions. On the whole, the declining contribution of the power T&D business has been a catalyst for KEC’s stock.
Source: Mint June 17, 2019 17:26 UTC