KEI Industries Q1 Results Review - Strong, Inline; Robust Outlook Intact: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.KEI Industries Ltd.’s strong and inline Q1 (volume/revenue/Ebitda/PAT up 18%/16%/22% /24% YoY) was led by strong revenue in domestic institutional cables (up 20% YoY) and retail sales (up 29% YoY, 52.7% mix). Unlike peer’s low growth, KEI’s House wires revenue increased 17% YoY at Rs 6.5 billion. Management retained its robust guidance of 15%+/20%+ revenue/PAT CAGR over five years. Exports (Q1 revenue down 37% YoY due to delay in shipment worth Rs 650 million) is now expected to grow 35% in FY25 (from 50% earlier, due to capacity constraint in HT cables). It aims exports to contribute 15%/20% to FY25/FY26 revenue. Extra high voltage cables (Q1 revenue Rs 810 million, down 65% QoQ) will start clocking strong growth from FY27 after new capacity gets operational. Retail sales is expected to grow at 20%+ CAGR on addition of distributors in new markets and will drive Ebitda margin to 12% by FY27 (currently ~10.5%). KEI’s ~Rs 20 billion capex plan over FY23-26 to build capacities across product lines will support future growth. We raise earnings estimates by ~4% mainly on better estimated margins. We now expect 18%/23%/ 26% CAGR in revenue/Ebitda/PAT over FY24-26E (FY19-24: 14%/14%/26% CAGR). We remain sanguine about KEI’s promising growth prospects and maintain Hold rating with a higher target price of Rs 4,631 (45 times FY26E price/earning, earlier Rs 4,444). Strong operating cash flows (Rs 6 billion plus annually) and a robust 38% return on invested capital in FY26E will keep investor’s interest high in KEI and should sustain its premium valuation..Click on the attachment to read the full report:.KEC International Q1 Results Review - Strong Order Book Outlook; Execution A Watch-Out: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

KEI Industries Q1 Results Review - Strong, Inline; Robust Outlook Intact: Systematix

The brokerage remains sanguine about KEI’s promising growth prospects and maintain Hold rating with a higher target price of Rs 4,631.

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KEI Industries Q1 Results Review - Strong, Inline; Robust Outlook Intact: Systematix

The brokerage remains sanguine about KEI’s promising growth prospects and maintain Hold rating with a higher target price of Rs 4,631.

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