⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KEI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | KEI | Market Cap | 42,100 Cr. | Current Price | 4,400 ₹ | High / Low | 5,303 ₹ |
| Stock P/E | 48.9 | Book Value | 647 ₹ | Dividend Yield | 0.10 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,475 ₹ | DMA 200 | 4,166 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.56 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 204 Cr. |
| RSI | 44.4 | MACD | -63.8 | Volume | 3,97,861 | Avg Vol 1Wk | 4,26,855 |
| Low price | 2,424 ₹ | High price | 5,303 ₹ | PEG Ratio | 2.15 | Debt to equity | 0.04 |
| 52w Index | 68.6 % | Qtr Profit Var | 42.5 % | EPS | 90.0 ₹ | Industry PE | 19.2 |
📊 Core Financials
- Revenue & Profitability: PAT rose sequentially (₹204 Cr → ₹235 Cr), showing strong growth. EPS at ₹90 reflects robust earnings power.
- Margins: ROCE at 21.3% and ROE at 15.6% highlight solid efficiency, though slightly below top-tier benchmarks.
- Debt: Debt-to-equity ratio of 0.04 indicates an almost debt-free balance sheet.
- Cash Flow: Strong operating performance supports healthy cash generation.
💹 Valuation Indicators
- P/E: 48.9, well above industry average (19.2), suggesting premium valuation.
- P/B: 6.8 (₹4,400 / ₹647), reflecting high market expectations.
- PEG Ratio: 2.15, indicating growth is priced at a premium.
- Intrinsic Value: Current price ₹4,400 is above fair value; better entry closer to ₹4,200–4,350.
🏢 Business Model & Competitive Advantage
- Strong presence in cables, wires, and EPC projects with diversified revenue streams.
- High demand from infrastructure and industrial sectors supports growth.
- Near debt-free balance sheet enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹4,200–4,350 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking growth exposure in infrastructure and industrial sectors, though valuation premium warrants caution.
✅ Positive
- Strong sequential PAT growth (+42.5%).
- Low debt-to-equity ratio (0.04) ensures financial stability.
- High EPS (₹90) reflects strong earnings capacity.
- DII holdings increased by 0.56%, showing domestic institutional confidence.
⚠️ Limitation
- High P/E (48.9) compared to industry average (19.2).
- High P/B ratio reflects premium valuation.
- PEG ratio (2.15) suggests growth is expensive.
- Stock trading below DMA 50 (₹4,475) and near DMA 200 (₹4,166), showing weak momentum.
📉 Company Negative News
- FII holdings decreased by 0.33%, showing reduced foreign investor confidence.
- Technical indicators (RSI 44.4, MACD -63.8) suggest bearish momentum.
📈 Company Positive News
- Sequential PAT growth from ₹204 Cr to ₹235 Cr.
- DII holdings increased by 0.56%, reflecting domestic institutional support.
- Near debt-free status enhances long-term stability.
🏭 Industry
- Industry P/E at 19.2, much lower than company’s P/E, indicating premium valuation.
- Infrastructure and industrial demand remain strong, supporting sector growth.
🔎 Conclusion
- KEI demonstrates strong fundamentals with efficient capital use and low debt.
- Valuation is premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹4,200–4,350 is favorable for long-term investors.
- Overall, a fundamentally strong company with growth prospects, though short-term momentum weakness and valuation premium warrant caution.