Buy KEI Industries; target of Rs 5450: Motilal Oswal

Motilal Oswal's research report on KEI Industries

The FY24 annual report key highlights of KEI Industries (KEII) are as follows: 1) the company has increased investments in capacity expansion, which is estimated to result in a revenue CAGR of ~15-16% in the medium term; 2) the share of sales through B2C in the overall revenue rose to ~47% in FY24 vs. ~46% in FY23, with a target to increase to ~50% by FY26E; 3) the company is focused on expanding its dealer/distribution network; and 4) the company seeks to expand the international segment, increasing the export share to 15-18% of the total revenue over the next three years vs. ~13% in FY24.

Outlook

We value KEII at 50x Sep’26E EPS to arrive at our TP of INR5,450. Reiterate BUY.

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