Analysts expect further gains in KEC International and Kalpataru Power

The outlook for transmission line companies has improved as competition in the domestic market has eased further and the international markets provide huge growth opportunity. The number of players qualified for the country’s largest power transmission company, Power Grid’s new orders has come down to only three as compared to at least 10, two years ago. Though the trend might change, it has brought big relief for the remaining players for now. Besides, activity in international markets, especially the CIS region, remains robust and competition is limited, given that there are only a few players. All these augur well for India’s top two transmission line players, KEC International and Kalpataru Power Transmission Ltd (KPTL).

The company is best positioned among its peers in terms of fuel availability and depends for only up to 10% of its total requirement on imported coal

After its initial public offering in 2004, followed by a follow-on offering in 2009, the finance ministry is proposing to disinvest another 9.5 per cent stake in India's largest power producer —NTPC — according to media reports. The management though, has denied any such development.

Despite the near-term uncertainties, analysts remain positive on long-term prospects and robust business model