Buy KEI Industries; target of Rs 540 : Sharekhan
Sharekhan is bullish on KEI Industries has recommended buy rating on the stock with a target price of Rs 540 in its research report dated December 15, 2020.
December 16, 2020 / 12:11 PM IST
Sharekhan's research report on KEI Industries
The management reiterated its revenue growth guidance along with stable OPM for FY2021 and expects revenue growth of 18-20% for FY22 led by the retail and EHV segments. Industry-leading growth to be led by ongoing market consolidation. Capacity expansion to generate 5x-6x revenues of capex incurred. The working capital cycle expected to normalise by year-end as payments are getting back on track; changing revenue mix (lower EPC) would generate better cash/returns over the medium term.
We retain a Buy rating on KEI with a revised PT of Rs. 540 given attractive valuation and positive outlook going ahead.
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