Shares of KEI Industries rose 4.1% to Rs 3,326.60 on the BSE on Wednesday after the company reported a strong set of earnings for the March 2025 quarter, driven by robust revenue growth across its cable and wire portfolio.
KEI Industries posted a 34.4% year-on-year rise in net profit to Rs 227 crore for the quarter ended March 2025, compared to Rs 168.5 crore in the same period last year. Revenue for the March quarter grew 25% to Rs 2,915 crore from Rs 2,330 crore a year earlier, signalling healthy demand in both retail and institutional segments for its cable, wire, and speciality product offerings.
EBITDA for the quarter increased 18% to Rs 301.3 crore. However, operating margins declined slightly to 10.3% from 11% a year ago, indicating some pressure on input costs or changes in pricing dynamics.
Ahead of the results, KEI shares closed nearly flat on Tuesday, ending down 0.37% at Rs 3,197.10 on the BSE. The stock has had a volatile run in recent months, falling 16% over the past year and 19% in the last six months. However, it has rebounded sharply in the near term, gaining 20.8% in the past month and 5% over the last week.
Technically, the stock is trading below three of its eight key simple moving averages — the 100-day, 150-day, and 200-day SMAs. The 14-day Relative Strength Index stands at 62.2, indicating neither overbought nor oversold conditions.
Brokerage view
Brokerage firm Nuvama has maintained a ‘Buy’ rating on KEI Industries with a target price of Rs 4,010, which implies a potential upside of over 25% from the stock's last closing price.
The brokerage cited significant outperformance in growth relative to cable and wire peers and expects a sharp recovery in the stock.
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Motilal Oswal maintained a ‘Neutral’ rating on KEI Industries despite a strong Q4 performance, citing the need to reassess post the upcoming earnings call. The brokerage highlighted a 26% YoY revenue growth and 34% PAT rise, both ahead of estimates, driven by robust momentum in the cables and wires (C&W) segment.
Dealer-led sales rose 42% YoY, while the EPC segment remained weak. Margins were broadly stable, and the company ended FY25 with a strong net cash position of Rs 1,490 crore. While management execution remains solid, the brokerage said it awaits further clarity on margin sustainability and order book conversion before revising its stance.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
KEI Industries posted a 34.4% year-on-year rise in net profit to Rs 227 crore for the quarter ended March 2025, compared to Rs 168.5 crore in the same period last year. Revenue for the March quarter grew 25% to Rs 2,915 crore from Rs 2,330 crore a year earlier, signalling healthy demand in both retail and institutional segments for its cable, wire, and speciality product offerings.
EBITDA for the quarter increased 18% to Rs 301.3 crore. However, operating margins declined slightly to 10.3% from 11% a year ago, indicating some pressure on input costs or changes in pricing dynamics.
Ahead of the results, KEI shares closed nearly flat on Tuesday, ending down 0.37% at Rs 3,197.10 on the BSE. The stock has had a volatile run in recent months, falling 16% over the past year and 19% in the last six months. However, it has rebounded sharply in the near term, gaining 20.8% in the past month and 5% over the last week.
Technically, the stock is trading below three of its eight key simple moving averages — the 100-day, 150-day, and 200-day SMAs. The 14-day Relative Strength Index stands at 62.2, indicating neither overbought nor oversold conditions.
Brokerage view
Brokerage firm Nuvama has maintained a ‘Buy’ rating on KEI Industries with a target price of Rs 4,010, which implies a potential upside of over 25% from the stock's last closing price.
The brokerage cited significant outperformance in growth relative to cable and wire peers and expects a sharp recovery in the stock.
Also read | GIFT Nifty signals weak start after India strikes terror camps in Pakistan, PoK
Motilal Oswal maintained a ‘Neutral’ rating on KEI Industries despite a strong Q4 performance, citing the need to reassess post the upcoming earnings call. The brokerage highlighted a 26% YoY revenue growth and 34% PAT rise, both ahead of estimates, driven by robust momentum in the cables and wires (C&W) segment.
Dealer-led sales rose 42% YoY, while the EPC segment remained weak. Margins were broadly stable, and the company ended FY25 with a strong net cash position of Rs 1,490 crore. While management execution remains solid, the brokerage said it awaits further clarity on margin sustainability and order book conversion before revising its stance.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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