KEI Industries — PL Capital's Top Stock Pick In Consumer Durable Sector; Q1 Results Preview

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PL Capital Report

Wires and cables companies under coverage have experienced healthy domestic demand aided by volume growth. Exports are expected to remain flat in Q1 FY26. However, fast moving electrical goods segment experienced below moderate growth, primarily in appliances, due to weak consumer demand.

Demand for fans and lighting products remained moderate. Room AC companies saw a weak quarter due to low demand, impacted by early rains. We expect our consumer durables universe to register sales/Ebitda/PAT growth of 5.4%/2.5%/0.4% YoY in Q1 FY26.

Furthermore, we anticipate KEI and Polycab to outperform, while Voltas to underperform in sales. In terms of profitability, Polycab and RR Kabel are expected to outperform.

We continue our positive view on W&C companies driven by healthy domestic demand, expanding market opportunities, and favorable industry trends in both domestic and export markets.

KEI continues to be our top pick.

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