Synopsis:
KEI Industries is in focus after it reported a revenue and net profit growth of 19% and 32% respectively, and an EBITDA growth of 31%. Morgan Stanley expressed its optimism over the company’s financials and expects the stock to rise by another 15%.
The shares of this leading manufacturer of cables and wires are in focus after it reported its latest Q2 financial performance. Morgan Stanley also expressed its optimism over the performance of KEI Industries. In this article, we will dive more into the details.
With a market capitalization of Rs 40,206 crore, the shares of KEI Industries Ltd made a day low of Rs 4033.65 per share, down by 9 percent from its previous day closing price of Rs 4423.60 per share. Over the past five years, the stock has delivered a multibagger return of 1,184 percent, outperforming the NIFTY 50’s return of 114 percent.
Q2 Highlights
KEI Industries has reported an operating revenue of Rs 2,726 crore in Q2 FY26, representing a 19 percent growth compared to Rs 2,284 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 5 percent from Rs 2,590 crore.
It reported an EBITDA of Rs 312 crore in Q2 FY26, representing a 31 percent growth as compared to Rs 238 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 5 percent from Rs 298 crore. Additionally, its margins expanded by 103 basis points during the period.
Regarding its profitability, it reported a net profit of Rs 204 crore in Q2 FY26, a growth of 32 percent as compared to Rs 155 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 4 percent from Rs 196 crore. As per the latest filings available, KEI Industries has a pending order book of Rs 3,824 crore.
The management of the company assured that they will focus on sustaining domestic growth & scaling exports to 18-19 percent of revenue, where the margins would be intact.
Also Read: How will ACC and Ambuja Cements perform in Q2 FY26? Here’s what you need to know
Analyst Comments
Leading global brokerage, Morgan Stanley, has maintained an Overweight rating on the stock with a target price of Rs 4,825, signaling an upside potential of 15 percent from its current market price.
Morgan Stanley cited that it is optimistic about the company. Its cables and wires (C&W) business achieved significant growth, with total revenue increasing by 22 percent YoY, against its forecast of 25 percent.
Exports were the major highlight; they went up by 117 percent YoY, which is a lot higher than what Morgan Stanley had anticipated (36 percent), whereas domestic sales increased by 13 percent. In the C&W segment, wires outpaced cables for faster growth, thus indicating a strong demand.
Morgan Stanley is confident that KEI will continue its good performance because of its increasing footprint both in the Indian and export markets, consistent profit margins, and a growing product line.
KEI Industries, which was established in 1968, has expanded from a local rubber cable maker to a worldwide leader in wire and cable solutions. The firm is present in more than 55 countries and has more than 30,000 channel partners. KEI, which is New Delhi-based, has 38 branch offices, 23 warehouses, and over 5,000 employees spread across India.
The company produces a variety of low, medium, and extra-high voltage power cables for residential and commercial clients. Additionally, it offers EPC services for power and infrastructure projects. KEI, with its robust manufacturing base and worldwide presence, is in a good position to take advantage of the rising demand in the utilities, construction, and industrial sectors.
Written by Satyajeet Mukherjee
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