The stock has declined 5.21% in three sessions, from its recent closing high of Rs 477.70 recorded on 23 March 2023.

In the past one year, the stock has gained 17.12% while the benchmark Sensex has added 0.15% in the past one year.

On the technical front, the stock's daily RSI (relative strength index) stood at 43.419. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On the daily chart, the stock was trading below its 50-day, 100- day simple moving average (SMA) placed at 467.73 and 460.67 respectively. It has, however, managed to trade above its 200-day SMA placed at 440.86.

KEC International said that the credit rating agency ICRA has reaffirmed/assigned the credit ratings to Rs 21,850 crore (enhanced from Rs 18,800 crore) line of credit at “[ICRA]AA-(Negative)/ A1+”.

The credit rating agency has reaffirmed its rating on the company's external commercial borrowings (foreign currency term loan) of $20 million at “[ICRA] AA- (Negative)”.

ICRA said that the reaffirmation/assignment of ratings continue to factor in KEC International's (KEC) strong market position as an engineering, procurement and construction (EPC) company in the power transmission and distribution (T&D) segment coupled with an improving order book from the non-T&D segments as well.

While the T&D segment dominates the company's order book mix, the diversification has improved over the years with higher contribution from non T&D segments, such as civil, railways and oil and gas.

Additionally, the company acquired KEC Spur Infrastructure Private Limited in FY2022 to foray into the oil and gas segment that would also allow revenue diversity over medium term as it scales up.

ICRA also takes cognisance of KEC's diversified geographical presence across the globe, deriving approximately 40-50% of its total revenues from overseas projects in the last few years. Moreover, KEC's demand prospects remain healthy because of the Government's focus on increasing infrastructure spending and the expected uptick in private capex cycle.

The ratings, however, are constrained by the high working capital intensity of the EPC business due to the long execution period of projects, milestone-based payments in the non-T&D businesses and the retention money requirement that is released post the defect liability period. This, in turn, results in dependence on short-term borrowing and extended credit period to the suppliers and sub-contractors.

The ratings also remain constrained by the exposure of KEC's operating profit margins to the volatility in key raw material prices, particularly for international EPC contracts that are fixed price in nature. While the company follows a price hedging mechanism for commodities such as aluminium and zinc to minimise the commodity price risk, it remains exposed to the adverse movement in steel prices in case of the fixed-priced contracts.

The negative outlook on the long-term rating of the company reflects weakness in the operating profitability as well as elevated debt levels that have persisted for longer than expected duration.

KEC International executes power transmission and distribution, railways, civil and solar projects on an EPC basis. It also manufactures power and telecom cables. KEC is one of the largest power transmission EPC companies in the world with presence in over 70 countries and a strong presence in India, the Middle East, Africa, South Asia the Americas and Central Asia.