KEI - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.1
| Stock Code | KEI | Market Cap | 40,918 Cr. | Current Price | 4,280 ₹ | High / Low | 4,575 ₹ |
| Stock P/E | 51.8 | Book Value | 647 ₹ | Dividend Yield | 0.10 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,094 ₹ | DMA 200 | 3,920 ₹ |
| Chg in FII Hold | -0.77 % | Chg in DII Hold | 1.08 % | PAT Qtr | 204 Cr. | PAT Prev Qtr | 196 Cr. |
| RSI | 48.4 | MACD | -0.88 | Volume | 1,39,100 | Avg Vol 1Wk | 2,52,551 |
| Low price | 2,424 ₹ | High price | 4,575 ₹ | PEG Ratio | 2.28 | Debt to equity | 0.04 |
| 52w Index | 86.3 % | Qtr Profit Var | 31.5 % | EPS | 82.7 ₹ | Industry PE | 20.0 |
📊 Financials Overview:
- Revenue & Profitability: Quarterly PAT improved from 196 Cr. to 204 Cr. (+31.5% variation), showing healthy growth.
- Margins: ROE at 15.6% and ROCE at 21.3% indicate strong efficiency and profitability.
- Debt: Debt-to-equity at 0.04 reflects a very low leverage position, ensuring financial stability.
- Cash Flow: Dividend yield at 0.10% is negligible, with reinvestment focus for growth.
💹 Valuation Indicators:
- P/E Ratio: 51.8 vs Industry PE of 20.0 → significantly overvalued.
- P/B Ratio: Current Price / Book Value ≈ 6.6 → trading at a steep premium.
- PEG Ratio: 2.28 → suggests growth is expensive relative to earnings.
- Intrinsic Value: Current price (₹4,280) is above fair zone; undervaluation closer to ₹3,200–₹3,400.
🏢 Business Model & Competitive Advantage:
- KEI Industries operates in cables, wires, and EPC projects, serving power, infrastructure, and industrial sectors.
- Competitive advantage lies in diversified product portfolio, strong brand presence, and low debt structure.
- Expansion in retail and exports supports long-term growth prospects.
📈 Entry Zone & Holding Guidance:
- Entry Zone: Attractive near ₹3,200–₹3,400 (aligned with DMA 200 and undervaluation zone).
- Long-Term Holding: Suitable for investors seeking exposure to infrastructure and industrial growth; valuations are stretched, so accumulation at lower levels is preferable.
Positive
- Strong ROE (15.6%) and ROCE (21.3%) indicate efficient capital use.
- Low debt-to-equity ratio (0.04) ensures financial stability.
- DII holdings increased (+1.08%), showing strong domestic investor confidence.
Limitation
- High P/E ratio (51.8) compared to industry average (20.0).
- P/B ratio at 6.6 indicates steep premium valuation.
- Dividend yield is negligible at 0.10%.
Company Negative News
- FII holdings decreased (-0.77%), showing reduced foreign investor confidence.
- Stock trading near 52-week high, limiting immediate upside potential.
Company Positive News
- Quarterly PAT improved (196 Cr. → 204 Cr.), showing operational growth.
- DII holdings increased (+1.08%), reflecting strong domestic support.
Industry
- Industry PE at 20.0, much lower than KEI’s valuation.
- Cable and wire industry benefits from infrastructure push, power sector growth, and industrial expansion.
Conclusion
⚖️ KEI Industries is a fundamentally strong company with excellent efficiency, low debt, and consistent profitability. However, current valuations are stretched, and dividend yield is negligible. Investors may consider entry near ₹3,200–₹3,400 for better risk-reward. Long-term holding is viable for those confident in infrastructure and industrial growth, while monitoring valuation risks is essential.
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