Sharekhan's research report on KEI Industries
Net earnings grew by a strong 34% y-o-y led by a 26% y-o-y revenue growth. Revenue growth was driven by a 35% growth in the C&W segment. Management has guided for an 18% revenue growth and operating margin of 11% in FY26 and expects growth of more than 20% once the Sanand facility is operational in FY27.. The first phase of Sanand facility is expected to be operational in Q1FY26. Company is expected to do well backed by tailwinds in sectors such as Renewables, Transmission, Data center, real estate and infrastructure. Stock has declined ~30% from its peak and is currently at attractive valuation of 23x PE to FY27 EPS.
Outlook
Hence, we upgrade our rating to Buy on the stock with a revised PT of Rs. 3,800.
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