Sharekhan has given Buy recommendation for KEI Industries with a target price of Rs. 909 in its research report issued on Aug 02, 2021
Sharekhan’s research report on KEI Industries
KEI reported better than expected performance for Q1FY22 led by strong growth in cables and stainless steel wire segment. Low EPC sales mix leads to lower working capital needs. Management retains FY2022 revenue growth of 18-20% with sustainable margins of 11% and a similar range in revenues and margins in consecutive years. Focus on expanding retail franchise and EHV business while EPC business to be scaled down.
We retain Buy rating KEI Industries Limited (KEI) with a revised PT of Rs. 909, given its positive outlook going ahead and reasonable valuation.