This Midcap Cable stock which deals in manufacturing cables and wires like HT cables, EHV cables, and LT cables, and sells products in India and overseas, was up by 8 percent in the day’s trade after the company announced raising funds through QIP at Rs. 3,880.54 per share.
Price Action
With a market capitalization of Rs. 38,959 Crores, the shares of KEI Industries Limited were up by 8 percent in the day’s trade touching a day’s high of Rs. 4397.80 per share. The stock reiterated from the day’s high and was trading at Rs. 4,315 per share which is up 6 percent higher from the previous closing price of Rs. 4,070.70 apiece.
What Happened
The stocks of KEI Industries soared after the company announced to raise funds through Qualified Institutional Placement with a floor price of Rs. 3,880.45 per share. The opening date of the issue is 25/11/2024. Earlier in the month of October the company announced a raise of around Rs. 2,000 crore.
About the Company
KEI Industries Limited was established in 1968 and headquartered in New Delhi. It is a manufacturer of wires and cables in India and specializes in Extra High Voltage, Medium Voltage, and Low Voltage power cables, alongside engineering, procurement, and construction services.
They operate through a diversified business model targeting both domestic and international markets, supported by a strong network of over 1,900 dealers. With a workforce exceeding 5,591 employees, the company aims to improve profitability through exports and retail segments while maintaining a robust order book and financial stability.
Revenue Mix
The company earns most of its revenue from cables and wires which contribute around 91.81 percent, Stainless steel wires account for 2.56 percent, and EPC projects around 5.6 percent as of Q2FY25.
Financials & Ratios
Its Revenue from operations grew by 17.51 percent year on year from Rs. 1,954.24 Crores in Q2FY24 to Rs. 2,296.58 Crores in Q2FY25, accompanied by profits of Rs. 140 Crores to Rs. 154.81 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 20.24 percent and a return on capital employed (ROCE) of 27.03 percent. It has reported a debt-to-equity ratio of 0.06.
Shareholding Pattern
As of September 2024, the shareholding pattern with promoters stake holding a share of 37.06 percent in KEI Industries, Foreign Institutional Investors (FII) holdings stood at 31.11 percent, Domestic Institutional investors (DII) standing at 16.01 percent, and public holdings standing at 15.82 percent. The order book of the company as of September 2024 stood at Rs. 3,933 crore.
Written by Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
