KEI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | KEI | Market Cap | 46,438 Cr. | Current Price | 4,858 ₹ | High / Low | 5,303 ₹ |
| Stock P/E | 54.0 | Book Value | 647 ₹ | Dividend Yield | 0.09 % | ROCE | 21.3 % |
| ROE | 15.6 % | Face Value | 2.00 ₹ | DMA 50 | 4,549 ₹ | DMA 200 | 4,249 ₹ |
| Chg in FII Hold | 1.78 % | Chg in DII Hold | -1.44 % | PAT Qtr | 235 Cr. | PAT Prev Qtr | 204 Cr. |
| RSI | 60.0 | MACD | 145 | Volume | 7,31,490 | Avg Vol 1Wk | 4,27,205 |
| Low price | 3,000 ₹ | High price | 5,303 ₹ | PEG Ratio | 2.37 | Debt to equity | 0.04 |
| 52w Index | 80.6 % | Qtr Profit Var | 42.5 % | EPS | 90.0 ₹ | Industry PE | 24.5 |
Entry Zone: 4,500 ₹ – 4,650 ₹ (near 50 DMA support)
Exit Guidance: 5,100 ₹ – 5,250 ₹ (resistance zone)
Holding View: Medium to long-term holding with valuation caution
Positive
- Strong ROCE (21.3%) and ROE (15.6%) indicate efficient capital utilization
- Very low debt-to-equity ratio (0.04) ensures balance sheet strength
- Robust quarterly PAT growth (204 Cr → 235 Cr) reflects operational momentum
- EPS of 90 ₹ supports profitability and valuation strength
- FII holdings increased (+1.78%), signaling foreign investor confidence
Limitation
- High P/E of 54.0 compared to industry PE of 24.5 — valuation stretched
- PEG ratio of 2.37 suggests growth not keeping pace with valuation
- Dividend yield of 0.09% offers negligible income appeal
- DII holdings decreased (-1.44%), showing reduced domestic institutional support
Company Negative News
- Valuation premium relative to industry peers may limit upside
- Low dividend yield reduces attractiveness for income-focused investors
Company Positive News
- Strong quarterly profit growth boosts investor sentiment
- FII accumulation indicates confidence in long-term prospects
- Technical momentum supported by RSI (60.0) and MACD (145)
Industry
- Industry PE at 24.5, significantly lower than KEI’s 54.0 — sector valuations more moderate
- Sector momentum strong with 52-week index return of 80.6%
Conclusion
KEI Industries demonstrates solid fundamentals with strong profitability, low leverage, and robust growth. However, stretched valuations and negligible dividend yield limit its appeal for new investors. Entry near 4,500–4,650 ₹ offers a risk-managed opportunity, with exits around 5,100–5,250 ₹ advisable. Long-term holding remains attractive if earnings growth sustains, though valuation monitoring and institutional flows should be tracked closely.
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