KEI Industries Ltd. share price target

KEI Fastest growing brand with EHV capabilities......................................................4 Story in Charts ....................................................................................................................5 KEI Growth drivers in place for Wires & Cables ........................................................6 KEI gained 260bps market share over FY16-20 .......................................................7 Established relationships and strong pre-qualification credentials.........................8 47% CAGR in exports over FY16-20 ..........................................................................8 Amongst few Indian players with 220kV+ EHV capabilities ....................................9 NIIP led capex to drive demand for wires and cables ............................................... 10...

KEI saw revenues in line with estimates but EBIDTA and PAT came in better then estimates (Exhibit 1) led by gross margin expansion of 141bps. The pending order book was Rs26.6bn at the end of H1FY21, compared to Rs29.5bn at the end of Q1, a conscious decline in order...

The theme of resilience resounds across the KEI Industries Annual Report. It boasts of powering resilience through its strengths of having a large & diversified product portfolio, strong prequalification credentials, wide customer base, established relationships with institutions customers, robust distribution network, technology edge, strong balance sheet and experienced management. The company is also one of the few manufacturers of EHV (Extra High Voltage) cables and has strategically...

KEI has sufficient capacities to generate revenues of Rs 56bn, a strong execution record, pre qualifications with almost all leading institutional clients, pan India distribution network, sufficient room to borrow to fund the greenfield capex incase demand picks up sooner and fairly stable margins(~10%), we feel the company is well poised to capture growth when the cycle turns. However given the recent run up in price, we feel that the stock may not delivery any immediate returns and at 13.1x FY22E EPS appears richly valued and hence we revise our rating to Accumulate from Buy with a revised TP of Rs 386...

KEI has sufficient capacities to generate revenues of Rs 56bn, a strong execution record, pre qualifications with almost all leading institutional clients, pan India distribution network, sufficient room to borrow to fund the greenfield capex incase demand picks up sooner and fairly stable margins(~10%), we feel the company is well poised to capture growth when the cycle turns. However given the recent run up in price, we feel that the stock may not delivery any immediate returns and at 13.1x FY22E EPS appears richly valued and hence we revise our rating to Accumulate from Buy with a revised TP of Rs 386...

KEI Industries (KEI) results were below our estimates, due to sales lost in dealer segment in last 10 days of lockdown. Usually March month is a peak month for sales through dealer/distributor network. Cables division is expected to bounce back in H2FY21 considering the government push for rural electrification and metro transport....

At 10.7x FY22E EPS, although valuations don't appear very cheap, but given that the company has sufficient capacities to generate revenues of Rs 56bn and has a strong execution record, pre qualifications most all leading institutional clients, pan India distribution network, sufficient cash reserves to fund greenfield capex incase demand picks up sooner, stable debt levels at Rs 3bn levels and fairly stable margins(~10%), we feel the company is well poised to capture growth when the...

KEI Industries Institution sales see an uptick, dealer network sales witness a slowdown During the quarter Institutional cable revenues were up ~40.0% YoY to Rs 7.4bn (Domestic Rs 4.7bn, Export Rs 2.7bn). In Q3FY20, Sales through dealer/ distributor network were up 4.5% YoY to Rs 3.7bn and total active dealers were increased from ~1450 in Q2FY20 to ~1600 in Q3FY20. Housing wire division volumes from dealer network were up 30% while cable division volumes grew 10-12%. Exports grew by 82.6% YoY to Rs 2,720m in Q3FY20...

KEI Industries Institution sales see an uptick, dealer network sales witness a slowdown During the quarter Institutional cable revenues were up ~40.0% YoY to Rs 7.4bn (Domestic Rs 4.7bn, Export Rs 2.7bn). In Q3FY20, Sales through dealer/ distributor network were up 4.5% YoY to Rs 3.7bn and total active dealers were increased from ~1450 in Q2FY20 to ~1600 in Q3FY20. Housing wire division volumes from dealer network were up 30% while cable division volumes grew 10-12%. Exports grew by 82.6% YoY to Rs 2,720m in Q3FY20...