The stock has been on the bull run for the past three years, rising as much as 520% during this period. So far this year, the shares rose about 19%.
KEI Industries, a BSE 500 company with a market capitalisation of Rs 15,700 crore, is into the business of making cables and stainless steel wires for the building and construction, defense, telecommunications, and other industries. The company manufactures and markets extra-high voltage (EHV), medium voltage (MV) and low voltage (LV) power cables, serving both retail and institutional segments.
It has an EPS of 50.47 on a trailing twelve month (TTM) basis and the stock is currently trading at a PE of 34.59.
According to the latest shareholding pattern available with the exchanges, public shareholders own a majority of the stake at 62.68%, while the remaining 37.32% is owned by promoters and promoter groups.
Among the public shareholders, mutual funds have 15.50% stake, while foreign investors own nearly 27%. Retail investors have a combined holding of 13.76% in the company.
KEI Industries has seen its sales grow multifold from just Rs 1,690 crore in FY13 to Rs 5,726 crore in FY22. Meanwhile, profit after tax (PAT) too surged from a mere Rs 26 crore to nearly Rs 376 crore in the same period.For the nine-months ending December period, the company’s revenue increased 26% year-on-year to Rs 4,958 crore, while EBITDA stood at Rs 525 crore. Meanwhile, PAT for the period was at 339 crore, compared with Rs 260 crore in the same period previous year.
Technical outlook – What should investors do?
Despite a rally in the last two years, the stock has still some steam left and analysts see further upside. “KEI Industries stock looks good until it is trading above Rs 1,470. So every dip is a buying opportunity for a target of Rs 2,100,” said Ravi Singhal, CEO, GCL Broking.
Price movement in KEI industries shows a pattern of higher highs and higher lows on the long term weekly time frame. Price has managed to break above a rectangle bullish pattern suggesting that the existing trend is likely to continue. The weekly and daily MACD are both in a buy mode.
“KEI industries is an outperforming stock as compared to the market and this underscores the inherent strength in the price action. Price rally should continue towards Rs 2,000-2,050 as the underlying current is extremely bullish,” said Manish Shah, an independent trader.
With data inputs from Ritesh Presswala
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
