Motilal Oswal Reiterates 'Buy' On KEI Industries; Sees 19% Upside; Here's Why

Motilal Oswal Report

KEI Industries Ltd. is among the leading players in the cable and wire industry in India. We believe KEI Industries benefits from multiple growth drivers and business strategies, such as:

1. strong growth potential in the C&W industry over the long term;

2. focus on capacity expansion and gaining market share;

3. growth in the retail business; and

4. higher exports and product innovations.

We estimate its revenue/Ebitda/earnings per share compound annual growth rate at ~17%/ 24%/22% over FY25-27. The stock is trading at 49 times/40 times FY26E/FY27E EPS, which remains attractive.

We value KEI Industries at 50 times Dec’26E EPS to arrive at our target price of Rs 5,150, having 19% upside potential. Reiterate Buy.

Key risks to our target price are:

1. slowdown in government-led infrastructure projects;

2. higher volatility in raw material prices;

3. global headwinds, which may impact export; and

4. increase in competition due to higher capacity addition in the sector.

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