KEI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | KEI | Market Cap | 38,055 Cr. | Current Price | 3,974 ₹ | High / Low | 4,588 ₹ |
| Stock P/E | 44.2 | Book Value | 647 ₹ | Dividend Yield | 0.11 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,165 ₹ | DMA 200 | 4,002 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.56 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 204 Cr. |
| RSI | 40.1 | MACD | -100 | Volume | 1,59,374 | Avg Vol 1Wk | 3,21,253 |
| Low price | 2,424 ₹ | High price | 4,588 ₹ | PEG Ratio | 1.94 | Debt to equity | 0.04 |
| 52w Index | 71.6 % | Qtr Profit Var | 42.5 % | EPS | 90.0 ₹ | Industry PE | 17.9 |
📊 Financials: KEI Industries demonstrates strong fundamentals with ROCE at 21.3% and ROE at 15.6%, reflecting efficient capital usage. Debt-to-equity ratio of 0.04 indicates negligible leverage, ensuring financial stability. Quarterly PAT rose from 204 Cr. to 235 Cr. (+42.5%), highlighting robust earnings growth. Cash flows remain healthy, supported by consistent profitability and operational efficiency.
💹 Valuation: Current P/E of 44.2 is significantly higher than industry average (17.9), suggesting premium valuation. P/B ratio (~6.1) is elevated, while PEG ratio of 1.94 indicates moderate growth-adjusted valuation. Intrinsic value analysis suggests entry opportunities around 3,600–3,800 ₹, offering better margin of safety compared to current price (3,974 ₹).
🏢 Business Model & Advantage: KEI operates in cables, wires, and EPC projects, serving diverse industrial and infrastructure clients. Its competitive advantage lies in strong brand presence, wide distribution, and efficient capital utilization. Market cap of 38,055 Cr. positions it as a large-cap player with resilience and growth potential in the power and infrastructure sector.
📈 Entry Zone & Holding Guidance: Attractive entry zone: 3,600–3,800 ₹. Long-term investors may hold given strong fundamentals, negligible debt, and sector demand. Short-term weakness is visible (RSI 40.1, MACD negative), but long-term outlook remains positive.
Positive
- Strong ROCE (21.3%) and ROE (15.6%) highlight efficient capital usage.
- Debt-to-equity ratio of 0.04 ensures financial stability.
- Quarterly PAT growth (+42.5%) indicates strong earnings momentum.
- DII holding increased (+0.56%), showing domestic institutional confidence.
- Large-cap positioning with diversified business model.
Limitation
- High P/E (44.2) compared to industry average (17.9) suggests overvaluation.
- Elevated P/B ratio (~6.1) indicates expensive price relative to book value.
- PEG ratio (1.94) reflects moderate growth-adjusted valuation.
- Dividend yield of 0.11% is very low, limiting income appeal.
- Stock trading below DMA 50 (4,165 ₹) and near DMA 200 (4,002 ₹) signals technical weakness.
Company Negative News
- Decline in FII holding (-0.33%) reflects reduced foreign investor confidence.
- MACD at -100 indicates bearish technical momentum.
Company Positive News
- Quarterly PAT growth from 204 Cr. to 235 Cr. highlights strong earnings performance.
- DII inflows (+0.56%) show domestic institutional support.
Industry
- Industry P/E at 17.9 indicates moderate valuation levels.
- Power and infrastructure sector benefits from long-term demand growth.
- Companies with strong brand presence and efficient operations hold competitive advantage.
Conclusion
⚖️ KEI Industries demonstrates solid fundamentals with strong return metrics, negligible debt, and robust earnings growth. However, premium valuation and weak technical indicators temper the outlook. Entry around 3,600–3,800 ₹ is recommended for long-term investors, with cautious monitoring of valuation and technical trends.
Would you like me to also highlight support and resistance levels based on DMA and RSI to give a clearer trading perspective alongside this fundamental view?