Buy KEI Industries, target price Rs 5,150: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on KEI Industries with a target price of Rs 5150. The current market price of KEI Industries Ltd. is Rs 4443. KEI Industries, incorporated in 1992, is a Mid Cap company with a market cap of Rs 42319.77 crore, operating in the Cables sector.

KEI Industries' key products/revenue segments include Cables, Income from EPC,Contracts,& Others, Stainless Steel Bars & Wires, Scrap, Other Services, Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 2296.57 crore, up 10.50% from last quarter Total Income of Rs 2078.34 crore and up 17.52% from last year same quarter Total Income of Rs 1954.23 crore. The company has reported net profit after tax of Rs 154.81 Crore in latest quarter.

The company's top management includes Mr.Anil Gupta, Dr.Rajesh Kumar Yaduvanshi, Mr.Sadhu Ram Bansal, Ms.Shalini Gupta, Mr.Vikram Bhartia, Mr.Vijay Bhushan, Mr.Pawan Bholusaria, Mr.K G Somani, Mrs.Archana Gupta, Mr.Akshit Diviaj Gupta, Mr.Rajeev Gupta, Mr.Vinay Mittal. Company has Pawan Shubham & Co. as its auditors. As on 30-09-2024, the company has a total of 9 Crore shares outstanding.

Investment Rationale
KEI Industries has consistently delivered strong performance led by a robust demand environment, a diversified customer base, and a significant presence across domestic and international markets. Its growing focus on the retail segment and capacity expansion would continue to drive growth for the company. The stock is trading at 49x/40x FY26E/FY27E EPS, which remains attractive. Motilal Oswal Financial Services values KEI Industries at 50x Dec?26E EPS to arrive at the target price of Rs 5,150. They have reiterated a BUY call.

Promoter/FII Holdings
Promoters held 37.06 per cent stake in the company as of 30-Sep-2024, while FIIs owned 31.11 per cent, DIIs 16.01 per cent.