KEI Industries Share: Today, on January 23, the shares of KEI Industries witnessed a spectacular rise of about 11 percent. This stock closed at Rs 4452.80 on BSE with a gain of 7.89 percent. In fact, after the results of the third quarter of FY25, investors have expressed confidence in the stock. The company has recorded positive figures in the December quarter and announced an improvement in growth guidance. With today’s rise, the market cap of the company increased to Rs 42,547.66 crore. The stock’s 52-week high is Rs 5,040.40 and 52-week low is Rs 2,883.60.
KEI Industries quarterly results
KEI Industries’ net profit in the December quarter increased by 9.4 per cent to Rs 164.8 crore from Rs 150.6 crore in the corresponding quarter of the previous financial year. The company’s revenue also increased by almost 20 percent to Rs 2,467.2 crore compared to Rs 2,059.3 crore in the same quarter last year.
However, operating margin declined 70 basis points year-on-year to 9.8 per cent, mainly due to weak operational performance in the cable and wire segment. Despite this, strong commentary from management has strengthened investor sentiment. Management remains optimistic about the demand outlook in both domestic and export markets.
of KEI Industries growth guidance
KEI Industries has also issued strong volume growth guidance of 19-20 per cent for FY26, driven by capacity additions and healthy demand in domestic and export markets, as well as EBITDA margins of 11 per cent. It is targeting 20 per cent CAGR in revenue from FY26 to achieve the target of Rs 25,000 crore by 2030. According to the management, domestic demand mainly comes from solar power and power distribution companies. The company aims to maintain EBITDA margins around last year’s levels for FY25.
Brokerage Opinion on KEI Industries
Brokerage firm Motilal Oswal Financial Services believes that KEI Industries’ increased focus on the retail segment and capacity expansion will continue to drive growth for the company. Nuvama Institutional Equities also said that with continued large-scale capacity expansion (gross block growth 3x in FY24-27), healthy operational cash flows, KEI Industries is poised to post strong earnings in the medium term.
Additionally, PL Capital said the company’s consistently strong volume/revenue growth and strong returns have led to premium valuations for the company. All three brokerages have given ‘Buy’ rating to the stock, with an upside potential of about 17-25 percent.
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