KEC International Share Price Jumps 7% After Q4 Results, Dividend Declared – Should You Hold?

KEC International Share Price Jumps 7% Post Q4 Results, Dividend Announcement: Do You Own?

Mumbai, May 27, 2025 —
Shares of KEC International Ltd., a leading infrastructure engineering, procurement, and construction (EPC) company under the RPG Group, surged nearly 7% in intraday trade after the company posted robust Q4 FY24-25 earnings and sweetened the deal for investors with a dividend payout. The upbeat performance and healthy order book outlook have prompted traders and long-term investors alike to revisit this counter.

Let’s break down why KEC International is making waves on Dalal Street today and what it means for your portfolio.

What Triggered the Surge?

Two key triggers have driven this rally:

1. Better-than-expected Q4 results

2. Final dividend announcement

While the broader market has been battling volatility due to global headwinds, KEC’s performance stood out, offering some much-needed optimism to investors betting on the infrastructure theme.

A Closer Look at KEC’s Q4 FY25 Results

The March quarter results highlighted strong execution, margin recovery, and sustained growth across domestic and international markets.

Key financial highlights:

The company’s profit growth and margin expansion were particularly appreciated by analysts. Strong project execution in railways, transmission lines, and civil businesses contributed significantly to the topline.

Dividend Delight: ₹5 Per Share Announced

The company has declared a final dividend of ₹5 per share, which takes the total FY25 dividend to ₹8, including interim payouts. This represents a healthy yield of over 1.4% at current market prices and reaffirms management’s confidence in its cash flows.

Dividend-seeking investors now have a fresh reason to consider this stock in the “income-plus-growth” category.

Infra Demand Fuelling Order Book Growth

KEC’s order book swelled to ₹39,600 crore, led by consistent inflows in:

• Transmission & Distribution (T&D)

• Railways

• Civil projects (metros, buildings, data centers)

• Cables and Smart Infra

The company also won large orders in international geographies like the Middle East, Africa, and South-East Asia. These expansions signify KEC’s strategic diversification beyond traditional power T&D.

Market Reaction: Bullish Momentum

KEC International’s share price surged from ₹675 to ₹722, registering an intraday gain of nearly 7% with heavy volumes. The stock has now broken past key resistance levels, forming a bullish breakout on daily charts.

Technical Snapshot:

• Current Price: ₹722

• 52-Week High: ₹740

• Support Levels: ₹695 / ₹675

• Resistance Ahead: ₹740 / ₹760

• RSI: 64 – Approaching overbought, but still room for upside

• Volume: 1.7x average – Confirming bullish interest

Market participants now expect the stock to test new highs if it closes decisively above ₹740 in the coming sessions.

Analyst Take: Should You Buy, Hold, or Book Profits?

Analyst opinions on KEC International remain broadly positive, especially in light of strong quarterly performance and promising FY26 guidance.

Brokerage Views:

• ICICI Direct: Retain Buy with a target of ₹800

• Motilal Oswal: Accumulate – Positive on long-term infra play

• HDFC Securities: Short-term cautious due to rally, but Buy on dips

Reasons to Stay Invested:

• Rising capex in power, rail, and civil infra

• Diversified revenue mix reducing cyclicality

• Robust international order inflows

• Healthy dividend policy

Risk Factors:

• Execution delays due to monsoon

• Currency volatility impacting overseas contracts

• Raw material price inflation pressuring margins

If you’re a long-term investor, the current surge could still offer an attractive entry point or top-up opportunity. For short-term traders, however, booking partial profits and trailing stop-losses may be prudent.

Future Outlook: Strong FY26 Guidance

In the earnings call, management provided FY26 revenue growth guidance of 15–18%, with a focus on:

• Consolidating leadership in T&D and railway electrification

• Expanding the civil vertical (especially smart infra)

• Optimizing working capital and improving ROCE

• Exploring new geographies and EPC contracts in EV and green energy sectors

CEO Vimal Kejriwal emphasized:

“We are witnessing unprecedented demand in infrastructure, and we’re confident of outperforming industry growth.”

This reaffirms the street’s conviction that KEC remains a long-term value creator.

Sectoral Perspective: Infrastructure Boom in India

KEC’s growth story aligns with India's massive infrastructure push under the National Infrastructure Pipeline (NIP) and Gati Shakti Mission. With increasing budget allocations for railways, highways, smart cities, and power grid modernization, companies like KEC are in the right place at the right time.

The stock has also gained from a rotation of funds toward capital goods and infra stocks, especially as IT and FMCG struggle amid margin headwinds.

KEC International – A Quiet Compounder in the Making?

The latest quarterly results have cemented KEC International’s position as a reliable performer in India’s infrastructure growth saga. With a strong order book, stable margins, global diversification, and shareholder-friendly dividend policy, it checks all the boxes for long-term wealth creation.

Whether you already own the stock or are considering adding it to your watchlist, the recent earnings should give you confidence. Just like its projects, KEC seems to be building something solid—brick by brick, contract by contract.

Verdict:
Hold for long-term gains
Buy on dips for new investors