KEI Industries reported revenue growth of 38.5% YoY, driven by 46% growth in domestic wires and cables revenue, while export W&C revenue grew 7% YoY. Inventory increased due to the Sanand ramp-up and is expected to stabilise at current levels going forward. Management expects exports to accelerate, supported by a strong overseas order book, including Rs 990 crore in export orders. Sanand capacity ramp-up remains gradual, with Phase 2 of the EHV and HT cable facility expected to commence commercial production by Mar'27.
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PL Capital Report
According to the brokerage PL Capital, KEI Industries Ltd. reported revenue growth of 38.5% YoY, driven by 46% growth in domestic wires and cables revenue, while export W&C revenue grew 7% YoY.
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Inventory increased due to the Sanand ramp-up and is expected to stabilise at current levels going forward.
Management expects exports to accelerate, supported by a strong overseas order book, including Rs 990 crore in export orders. Sanand capacity ramp-up remains gradual, with Phase 2 of the EHV and HT cable facility expected to commence commercial production by Mar'27.
Management maintained its FY27 revenue growth guidance of 25%+ and Ebitda margin guidance of ~11%, with margins expected to improve towards 11-12% as Sanand utilisation ramps up.
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Management reiterated its revenue growth target of 20% compound annual growth rate over the next three-four years.
PL Capital has tweaked its earnings estimates by for FY28/FY29 and estimates revenue/Ebitda/PAT compound annual growth rate of 25.6%/29.4%/26.0% for FY26-29E.
The brokerage has maintained ‘Buy rating on KEI Industries with a target price of Rs 5,961, and has valued it at 35 times Sep'28E earnings.
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