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Accumulate KEI Industries; target of Rs 1273: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on KEI Industries with a target price of Rs 1273 in its research report dated July 27, 2022.

July 28, 2022 / 09:08 PM IST
 
 
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Prabhudas Lilladher's research report on KEI Industries


We have not made any changes to estimates and maintain Accumulate rating. Given the strong demand outlook despite inflationary environment, management has maintained LT CAGR of 17-18%. Management also highlighted that margin will be maintained in the range of 10.5-11%. We remain structurally positive on KEI for longer term & believe it is well placed to capture demand for wires & cables given 1) increased Infra, Industrial, Railways, Housing & Solar activity 2) wide product portfolio 3) amongst very few players having EHV cable capabilities 4) sustained momentum in dealer network sales (40% of sales, targeted to reach 50% in next couple of years) and 5) tapping into rising export opportunities.



Outlook


We estimate Sales/ PAT CAGR of 16%/ 23% over FY22-24E. We value the stock at 20x FY24 EPS and arrive at target price of Rs1,273 (unchanged).

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KEI Industries - 270722 - prabhu

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first published: Jul 28, 2022 09:08 pm
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