Indisbulls Ventures
KEI Industries (Buy)
CMP: ₹478.35
Target: ₹525
KEI Industries (KEI) was established in 1968 as a partnership firm Krishna Electrical Industries with prime business of manufacturing house wiring rubber cables. It was converted into a public limited company with the corporate name KEI Industries in December 1992.
2. KEI’s expertise in EPC projects and excellent track record has rendered it the preferred candidate for cable and wire industry development. With the government sharpening focus on power generation, transmission and distribution, demand for cables as part of T&D equipment is expected to expand significantly.
Outlook & valuations: KEI has constantly outperformed its peers in challenging times. KEI has a track record of maintaining healthy balance sheet and sound returns ratio. We believe the company will be to maintain its guidance of growing at 20 per cent on the top-line over a period of next two years, therefore would like to recommend a ‘buy’ on the stock.