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Capitalvia Global Research
KEI Industries (Buy)
CMP: ₹465.35
Target: ₹490
KEI Industries Ltd was incorporated in 1968 as partnership firm by the name Krishna Electrical Industries and started with manufacturing of switch board cables. It was converted into a public limited company in 1992, and in 1995 it got listed on the stock exchanges.
KEI Industries is engaged in manufacturing of low tension, high tension and extra high voltage cables, along with control and instrumentation and specialty cables, house wires and stainless steel wires.
The research experience of the company allows them to constantly improve their product portfolio, deliver niche products and provide customised solutions for customers. This helps the company in delivering the growth.
The company reported net sales of ₹1,233.7 crore (in quarter ending Sepember 2019) against
₹1,081.36 crore (in quarter ending June 2019), registering a boost of 14.08 per cent. The company’s operating income during the quarter grew 22.2 per cent on a year-on-year basis. The expenses were up by 20.6 per cent y-o-y during the same period.
KEI has constantly outperformed its peers in challenging times. KEI has a track record of maintaining healthy balance sheet and sound returns ratio. Aligning its future prospects and growth, we recommend a ‘buy’ on KEI with a target price of ₹490.
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