The shares of KEI Industries Limited have delivered a return of 19,608% to its shareholders in 9 years as the stock price has increased from Rs 7.25 in September 2013 to the current level of Rs 1,446.
If an investor would have invested Rs 1 lakh in the shares of the company at those levels 9 years ago their investment would be worth Rs 1.97 crores today. In the last two years, the stock has delivered a multibagger return of 311 per cent, and in the last year, the company logged a return of approximately 48 per cent.
KEI Industries manufactures cables and wires, with a product portfolio ranging from housing wires to Extra High Voltage (EHV) cables, and further diversifying into the Engineering, Procurement, and Construction (EPC) services for power and transmission projects.
The company has a 5.2% market share in the total cables and wires industry and 7.3% in the organized cables and wires industry.
Domestic brokerage Sharekhan is bullish on KEI Industries and has recommended a ‘Buy’ rating on the stock with a target price of Rs 1,765 which represents an upside of 24% from the current levels of Rs 1,428.
In Q1FY23, the company reported total revenue of Rs 1,565 crores which increased from Rs 1,017 in the same period a year ago. In the previous quarter, the company earned a total revenue of Rs 1,791 crores.
The net profit of KEI Industries almost doubled to Rs 103 crores up from Rs 67 crores in Q1FY22. On a sequential basis, their profits declined from Rs 115 crores.
The company has a market capitalization of Rs 12,879 crores and a dividend yield of 0.18% as on September 26th, 2022. Further, KEI Industries is undervalued in the market as its TTM PE is 31.21 against the industry average of 44.74. The promoters have a 38.02 per cent stake in the company with zero pledge.
Written by Anoushka Roy
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