One of the most important factors focused on by Retail Investors, usually, is the buying and selling behavior of large Institutional Investors.
Listed below is one such debt-free stock under the ‘Cable’ industry held by Morgan Stanley & Goldman Sachs that one should keep an eye on:
KEI Industries Limited
With a market capitalization of Rs 30,672.61 crores, the stocks of KEI Industries Limited started their trading session on Tuesday at Rs 3,410.30 and currently trade at Rs 3,398.95, exhibiting a dip of around 0.70 percent compared to the previous closing price of Rs 3,421.20 apiece.
Having a walkthrough of the recent financial reports, the company’s prime indicators of business, viz, operating revenues as well as after-tax profits, showed an increase in numbers.
The former took an upward shift from Rs 1,947 crores during Q2FY24 to Rs 2,062 crores during Q3FY24, and the latter, keeping the timeframe the same, rose from Rs 140 crores to Rs 151 crores.
In addition to the above, the company’s ratio analysis portrays the profitability as well as return ratios being on a rise during FY22-23 with the net profit margin being reported at nearly 7 percent, return on equity (RoE) at 18.50 percent, and the return on capital employed (RoCE) at 25.50 percent.
A glance at the latest shareholding data for the December 2023 quarter shows two well-known institutions, viz, Morgan Stanley and Goldman Sachs, holding a stake in the company.
Morgan Stanley, under its “Emerging Leaders Equity Fund”, holds approximately 10.66 lakh equity shares of the company equivalent to a 1.18 percent stake. Moreover, Goldman Sachs, under its “India Equity Portfolio”, holds around 9.05 lakh equity shares of the cable company equivalent to a 1 percent stake.
According to the latest data available, the company reported capital expenditure (capex) plans consisting of significant investments for capacity expansion in Extra high voltage (EHV) and Low Tension (LT) cables.
The company aims to spend around Rs 400 crores in FY24 for greenfield and brownfield capacity expansion, along with a total capex plan of Rs 1,000 crores planned over the next three years. The company is also focusing on doubling its EHV cables capacity and the same is expected to boost its revenue to Rs 1,200 crores.
KEI Industries Limited is engaged in the business of manufacturing and supplying power as well as other industrial cables. Its operating segments include wires, cables, stainless steel wires, and the EPC projects segment. Out of the above, the company generates maximum revenue from the ‘Wires and Cables’ segment.
Written by Amit Madnani
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