KEI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.5

📊 Core Financials & Profitability

Revenue Growth: KEI Industries has shown stellar growth, with annual revenue rising from ₹4,181 Cr in FY21 to ₹9,736 Cr in FY25

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Profit Margins: Net profit increased from ₹273 Cr to ₹696 Cr over the same period

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. Quarterly PAT stands at ₹196 Cr, slightly down from ₹227 Cr, but YoY growth remains strong.

Return Metrics

ROE: 15.6% and ROCE: 21.3% — excellent, indicating efficient capital deployment.

EPS: ₹78.6 — strong earnings for a ₹4,149 stock.

Debt Profile: Debt-to-equity at 0.04 — virtually debt-free, offering financial resilience.

Dividend Yield: 0.10% — minimal, but consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 53.5 Richly valued vs. industry PE of 29.1.

P/B Ratio ~6.85 Elevated relative to book value ₹606.

PEG Ratio 2.35 Indicates overvaluation relative to earnings growth.

🔍 Conclusion: Valuation is stretched, but justified by strong fundamentals, low debt, and consistent earnings growth.

🔌 Business Model & Competitive Edge

Core Operations: KEI Industries is a leading manufacturer of wires and cables, with segments in EPC, stainless steel wire, and institutional sales.

Strategic Strengths

Strong order book and institutional demand.

Expanding retail footprint and export base.

High operating leverage and margin consistency.

Growth Outlook

EPS grew from ₹30.47 in FY21 to ₹75.65 in FY25

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Quarterly revenue rose to ₹2,590 Cr in June 2025 from ₹2,060 Cr YoY

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Bullish sentiment from analysts with targets ranging from ₹4,200 to ₹4,827

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📉 Technicals & Entry Zone

RSI: 62.6 — slightly bullish, nearing overbought.

MACD: 72.0 — strong momentum.

DMA Levels: Price above both 50-DMA and 200-DMA — medium-term strength.

📌 Suggested Entry Zone: ₹3,900–₹4,050 — near 50-DMA, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, low debt, and sector tailwinds support long-term value.

Buy on Dips: Prefer entry below ₹4,050, especially if RSI cools off.

Monitor: Institutional order flow, margin trends, and export expansion.

You can explore Moneycontrol’s full financial snapshot and analyst sentiment or Trendlyne’s brokerage targets and research reports for deeper insights. Let me know if you'd like a peer comparison with Polycab or Finolex Cables next.

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