KEI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s a high-voltage breakdown of KEI Industries (KEI) — a strong play in the power cable & infrastructure space ⚡🔧

💼 Core Financials & Performance Indicators

ROCE: 21.3% and ROE: 15.6% — solid return metrics show efficient use of capital and healthy profit generation.

Debt-to-Equity: 0.04 — ultra-low leverage; excellent financial discipline.

EPS: ₹78.6 — impressive earnings output for the price level.

PAT Decline: ₹227 Cr → ₹196 Cr — dip this quarter (‑13.6%) possibly due to seasonal or execution delays; not alarming if short-term.

🧾 Dividend Yield: 0.10% — marginal payout; signals growth-focused reinvestment.

📊 Valuation Check

Metric Value Insight

P/E Ratio 50.5 ⚠️ Expensive vs Industry PE (30.3); priced for perfection

P/B Ratio ~6.5 Commands premium — strong investor sentiment

PEG Ratio 2.22 ❌ Overvalued relative to growth; cautious stance advised

💡 Despite a rich valuation, the company's fundamentals are strong — but short-term upside may be capped unless earnings accelerate.

🧠 Business Model & Strategic Positioning

KEI specializes in low-, medium-, and high-voltage cables, with exposure to EPC (engineering, procurement, construction) contracts.

Plays a pivotal role in India's infrastructure boom, renewable energy, and urban electrification.

Competitive moat: large client base, backward integration, strong execution.

Institutional confidence: FII ↑ 0.76%, DII ↑ 2.12% — active accumulation.

📉 Technical Outlook & Entry Zone

Current Price: ₹3,922

Slightly above DMA-50 (₹3,719) and DMA-200 (₹3,664) — bullish trend continuing.

RSI: 58.9 — approaching overbought zone.

MACD: +65.2 — momentum remains strong.

🎯 Suggested Entry Zone: ₹3,850–₹3,900 (on minor dips) 🧱 Support: ₹3,720 🔼 Resistance: ₹4,050–₹4,180

⚠️ Volume is lower than average — watch for breakout confirmation.

⏳ Long-Term Holding Guidance

KEI is a quality growth stock riding structural tailwinds in power & infra.

Premium valuation demands steady margin expansion and top-line growth.

Suitable for long-term portfolios focused on infrastructure, electrification, and make-in-India themes.

Ideal horizon: 3–5 years, with regular earnings monitoring.

Need help stacking this against peers like Polycab, Havells, or Finolex? I can whip up a comparison matrix that might reveal tactical entry points 🔍📊.

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