Synopsis: Stocks with significant exposure to West Asia rallied after the US-Iran ceasefire eased fears of project delays and trade disruptions, boosting sentiment for companies like KEC, KRBL, and a few more.
The United States and Iran have agreed to a temporary two-week ceasefire, easing fears of a broader conflict in West Asia. Investors had been concerned that rising tensions could disrupt trade, delay infrastructure projects and weaken business activity across the Gulf region.
The ceasefire has also triggered a sharp decline in crude oil prices, improving sentiment toward companies with significant business exposure to West Asia. Against this, stocks in the infrastructure, engineering and export sectors are in focus as investors expect project execution and trade activity to continue without major disruption.
KEC International Ltd
KEC International is a diversified EPC player under the RPG Group, mainly focused on power transmission, railways, civil construction and renewables. The company has a strong presence in both India and overseas markets, especially in transmission lines and railway electrification.
With a market capitalisation of Rs. 14,977 cr, the shares of KEC International Ltd were trading at Rs. 562.65 per share, increasing 8% in today’s market session, making a high of Rs. 576, up from its previous close of Rs. 531.55 per share.
It has significant business in West Asia. Around 20% of its total order book and 28% of its recent project inflows come from the region. With fears of disruption fading, the stock rose in today’s trade.
Kalpataru Projects International Ltd
Kalpataru Projects International is a major EPC company with operations in power transmission, buildings, water, railways, oil & gas pipelines and urban infrastructure. The company operates in more than 75 countries and has a well-diversified order book, which reduces dependence on any one sector.
With a market capitalisation of Rs. 19,415 cr, the shares of Kalpataru Projects International Ltd were trading at Rs. 1136.95 per share, increasing 5% in today’s market session, making a high of Rs. 1146, up from its previous close of Rs. 1094.05 per share.
It has a smaller but still meaningful presence in West Asia, with 11% of its overall order book linked to the region. Even though only 2% of its recent orders came from there, investors expect the company to win more projects if conditions improve.
KRBL Ltd
KRBL is India’s largest basmati rice company and the owner of the India Gate brand. Unlike the other stocks here, KRBL is an FMCG and export-oriented business, benefiting from rising branded food consumption and global demand for basmati rice.
With a market capitalisation of Rs. 7,606 cr, the shares of KRBL Ltd were trading at Rs. 332.30 per share, increasing 11% in today’s market session, making a high of Rs. 343.95, up from its previous close of Rs. 310.70 per share.
It is one of India’s largest basmati rice exporters and gets about 61% of its basmati revenue from Middle Eastern countries. The ceasefire eased concerns about trade disruptions and weaker demand, sending the stock up as much as 8%.
VA Tech Wabag Ltd
VA Tech Wabag is a specialist water treatment company focused on sewage treatment, desalination and wastewater recycling projects. It is one of the few listed plays on India’s water infrastructure theme and has a strong international presence, especially in West Asia.
With a market capitalisation of Rs. 8,209 cr, the shares of VA Tech Wabag Ltd were trading at Rs. 1317.55 per share, increasing 6% in today’s market session, making a high of Rs. 1328.70, up from its previous close of Rs. 1258.65 per share.
It is executing major desalination and water-treatment projects in countries such as Saudi Arabia, since its business depends heavily on continued spending in the region the easing of tensions lifted sentiment around the stock, which gained in today’s session.
Larsen & Toubro Ltd
Larsen & Toubro is India’s largest engineering and construction company, with businesses spanning infrastructure, defence, heavy engineering, IT services and energy. The company benefits from India’s long-term capex cycle and has a large order book across roads, metros, power and hydrocarbon projects.
With a market capitalisation of Rs. 5,49,255 cr, the shares of Larsen & Toubro Ltd were trading at Rs. 3992.75 per share, increasing 8% in today’s market session, making a high of Rs. 4024.90, up from its previous close of Rs. 3723 per share.
It has the highest exposure to West Asia among major Indian infrastructure firms, with nearly 37% of its order book coming from the region. Because investors were worried that the conflict could delay projects or payments, the stock had been weak over the past month with a decline of over 20 percent.
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