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Buy KEI Industries; target of Rs 1410: Sharekhan

Sharekhan is bullish on KEI Industries has recommended buy rating on the stock with a target price of Rs 1410 in its research report dated July 27, 2022.

July 29, 2022 / 10:55 PM IST
 
 
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Sharekhan's research report on KEI Industries


KEI Industries reported strong numbers for Q1Y2023 helped by low base and registered ~27%/~61% volume/value growth in cables and wires segment. Higher input cost continued to weigh on gross/operating margin which reduced by ~612/~100 bps and came in at ~24.9%/10.2%. The management expects a 17-18% revenue CAGR in the next two-three years with 30-35% y-o-y growth in the retail business. It also eyes an operating margin of 10.5-11% and PAT margin of 6.5% in FY23. 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 a revised PT of Rs. 1,410, factoring in a promising growth outlook and reasonable valuation.


For all recommendations report, click here

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KEI Industries - 280722 - khan

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first published: Jul 29, 2022 10:55 pm
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