Dolat Capital Market has given Buy recommendation for KEI Industries with a target price of Rs. 580 in its research report issued on Mar 15, 2021
Dolat Capital Market’s research report on KEI Industries
KEI expects to end FY21 at ~87% of FY20 revenues but it expects to pick up pace in FY22 with ~20% revenue growth and stable margins at +11%. Institutional order book is back to precovid19 levels with new orders from cement, refinery, steel and infra coming in. In our interaction, management indicated its focus on growing the B2C business with specific focus on wires, to create a platform for the FMEG business in coming years.
We maintain our Buy rating and value the stock at 18xSep22E with a TP of Rs580. It continues to be our pick in the cables and wires space.