Sharekhan has given Buy recommendation for KEI Industries with a target price of Rs. 750 in its research report issued on May 31, 2021
Sharekhan’s research report on KEI Industries
Q4FY2021 was a descent quarter. Revenue and margins came on expected lines, PAT was better than estimates on lower interest cost. Management expects FY2022 revenue growth of 17-18% with sustainable margins of 11% and a similar range in revenues and margins in consecutive years. Working capital cycle is expected to come down due to the lowering of its exposure on EPC with more focus towards expanding its retail franchise and the EHV business.
We retain Buy rating KEI Industries Limited (KEI) with a revised PT of Rs. 750, given its positive outlook going ahead and reasonable valuation.