KEI Industries stock climbs 4% after Goldman Sachs upgrades to ‘buy’

KEI Industries stock climbs 4% after Goldman Sachs upgrades to ‘buy’

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26 Aug, 2025 12:21

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The wires and cables manufacturer KEI Industries Ltd. was upgraded to ‘buy’ from ‘neutral’ by international brokerage Goldman Sachs, leading the firm’s shares to jump sharply in trade on April 17.

At 12 pm, shares of KEI Industries were trading at Rs 2,868, which is over 4 percent higher. However, the stock is down 43 percent from its peak of Rs 5,039.

Goldman Sachs bumped KEI Industries shares to ‘buy’ for the first time since it initiated coverage on the stock, owing to an attractive risk-reward ratio. However, the brokerage trimmed the target prices for KEI from Rs 3,130 to Rs 2,980 now, which implies an eight percent upside from current levels.

However, the brokerage has downgraded infrastructure and engineering giant Larsen & Toubro from the “buy” rating to a “neutral” rating, stating expectations of capex deferrals as a factor. The stock’s target price has been cut to Rs 3,330 from the earlier Rs 3,640. The shares of L&T fell today, and as of 12.25 p.m, are trading at Rs 3196.

Goldman Sachs anticipates that new factory capex may face deferrals, and may inhibit and slowdown in order volumes. However, this impact could be partially absorbed by declining commodity prices and reduced financing costs.

Goldman Sachs also expects cable and wire companies to continue to capitalize on the benefits of ongoing investments in the power and infrastructure sectors in the near term. That being said, it cautions investors that this spurt could begin to moderate by FY27.

Export opportunities remain significant for these companies, as India currently accounts for only 2 percent to 3 percent of the global cable and wire export market, highlighting ample room for growth.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​​