Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy KEI Industries: target of Rs 1300: Sharekhan

Sharekhan is bullish on KEI Industries has recommended buy rating on the stock with a target price of Rs 1300 in its research report dated May 10, 2022.

May 12, 2022 / 11:58 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on KEI Industries


KEI Industries reported strong numbers for Q4FY2022 led by ~20%/52% volume/value growth in cables and wires segment. However, higher input cost weighed on gross/operating margin which reduced by ~600/140 bps and came in at ~24%/9.6%. The management expects a 17-18% revenue CAGR in the next two-three years. It also eyes an operating margin of 10.5-11% and PAT margin of 6.5% on a sustainable basis. KEI’s focus continues to be on expanding retail businesses and exiting EPC business. De-bottlenecking in existing capacities and greenfield expansion in cables and wires at ~ Rs. 800 crore investment (first phase by 2024E) would help sustain its high-growth trajectory.



Outlook


We retain Buy rating on KEI with an unchanged PT of Rs. 1300, factoring in promising growth outlook and compelling valuation.

Close

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: May 12, 2022 11:58 am
Sections
ISO 27001 - BSI Assurance Mark