Please refer to important disclosures at the end of this report
KEI Industries Limited (KEI), known for its unique product range across the world
is one of the leading players in the wires and cables industry. KEI manufactures
high and low tension cables (EHV, HT & LT), control and instrumentation cables,
house wires and stainless steel wires. The healthy order book indicates strong
revenue visibility of KEI’s with current order book (OB) at `3,233cr. Furthe
improvement in the order book will lead to increase in turnover and profitabilit
of the company. Its OB grew by ~28% in the last 3 years due to strong orde
inflows from State Electricity Boards, Power grid, etc. KEI’s consistent effort to
increase its retail business from 30% of revenue in FY16 to 40-45% o
revenue in the next 2-3 years on the back of strengthening distribution
network and higher ad spend. KEI’s export (FY16 - 8% of revenue) is expected to
reach a level of ~14-15% in next two years with higher order execution from
current OB of ~`180cr and participation in various international tenders
worth `500cr. We expect a strong ~26% growth CAGR over FY16-19 in exports.
We expect KEI to report net revenue CAGR of ~14% to ~`3,445cr and net
profit CAGR of ~26% to `123cr over FY16-19E. We expect with higher orde
book execution in EPC segment, growth in EHV business, higher B2C sales and
higher exports going ahead will help to boost the revenues and profitability o
the company in the long run. The company has good consistent profit growth o
42.27% over 5 years. Hence Buy.
CMP `215
Stock Info
Bloomberg Code
Shareholding Pattern (%)
Promoters 46.6
MF / Banks / Indian Fls 18.8
FII / NRIs / OCBs 4.2
Indian Public / Others 30.5
Abs. (%) 3m 1yr 3yr
Sensex 8.3 14.8 30.7
KEI Inds. 56.8 115.3 958.0
52 Week High / Low 219/95
Avg. Daily Volume 84,422
Market Cap (
cr) 1,674
BSE Sensex 29,656
Nifty 9,218
Face Value (
Reuters Code KEIN.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
KEI Industries
Others | Cables
April 25, 2017
KEI Industries | Cables
pril 25, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement KEI Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15