Sharekhan has given Buy recommendation for KEI Industries with a target price of Rs. 1765 in its research report issued on Sep 16, 2022
Sharekhan’s research report on KEI Industries
We interacted with KEI Industries Limited (KEI) and came out confident on the company’s capability to gain market share in wires, strengthen leadership in EHV, LT and HT cables through capacity expansion, and focus on expanding its retail business. Management has maintained 17-18% revenue CAGR target over the next two-three years. Management expects OPM to be at ~10.5% in FY2023 and, thereafter, move up to 11%. Healthy balance sheet with net cash position, improving working capital cycle, and strong return ratios give us further comfort.
Outlook
We retain our Buy rating on KEI with a revised PT of Rs. 1,765, factoring in KEI’s formidable position in the W&C, which would help it capture robust demand in institutional and retail segments.