Sharekhan's research report on KEI Industries
Our Interaction with KEI Industries (KEI) reaffirms our positive stance on the company underpinned by its efforts to gain market share in wires, leadership in EHV cables, and focus on expanding its retail footprints across regions. The management expects a 17-18% revenue CAGR for the next two-three years as the commodity prices have started to stabilize and exponential growth may not be sustainable. It also eyes an operating margin of 10.5-11% and PAT margin of 6.5% on a sustainable basis. De-bottlenecking in existing capacities and greenfield expansion in cables and wires at ~ Rs. 800 crore investment (first phase by Q32024E) would help in market share gain and achieve its growth targets.
Outlook
We retain a Buy rating on KEI with an unchanged PT of Rs. 1,300, factoring in optimistic demand and growth outlook.
More Info
At 17:30 KEI Industries was quoting at Rs 1,151.75, down Rs 17.40, or 1.49 percent.
It has touched an intraday high of Rs 1,178.05 and an intraday low of Rs 1,106.65.
It was trading with volumes of 7,309 shares, compared to its thirty day average of shares, a decrease of percent.
In the previous trading session, the share closed down 0.26 percent or Rs 3.05 at Rs 1,169.15.
The share touched its 52-week high Rs 1,376.75 and 52-week low Rs 690.00 on 02 June, 2022 and 28 July, 2021, respectively.
Currently, it is trading 16.11 percent below its 52-week high and 67.39 percent above its 52-week low.
Market capitalisation stands at Rs 10,377.89 crore.
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