Sharekhan has given Buy recommendation for KEI Industries with a target price of Rs. 645 in its research report issued on Mar 23, 2021
Sharekhan’s research report on KEI Industries
The management reiterated its revenue growth guidance along with stable OPM for FY2021 and expects revenue growth of 18-20% for FY22 led by the retail and EHV segments. Industry-leading growth to be led by ongoing market consolidation. Capacity expansion to generate 5x-6x revenues of capex incurred in the ensuing years. The working capital cycle expected to normalise by year-end as payments are getting back on track; changing revenue mix (lower EPC) would generate better cash/returns over the medium term.
We retain a Buy rating on KEI with a revised PT of Rs 645 given the positive outlook going ahead.