KEI - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.0

📈 KEI Industries shows strong fundamentals and institutional support, making it a solid swing trade candidate despite short-term technical weakness.

🎯 Optimal Entry Price: ₹3,950–₹3,980

🚪 Exit Target (if already holding): ₹4,200–₹4,300

🔍 Positive

• 📈 ROCE of 21.3% and ROE of 15.6% reflect excellent operational efficiency.
• 📈 Debt-to-equity ratio of 0.04 indicates a strong balance sheet with minimal leverage.
• 📈 DII holding increased by 1.08%, showing strong domestic institutional confidence.
• 📈 Quarterly PAT growth from ₹196 Cr to ₹204 Cr shows consistent earnings momentum.
• 📈 EPS of ₹82.7 supports valuation strength.
• 📈 Volume above weekly average (1.60L vs 1.45L), indicating rising interest.

⚠️ Limitation

• 📉 P/E of 48.3 is significantly above industry average (22.5), suggesting overvaluation.
• 📉 MACD at -27.2 indicates bearish momentum.
• 📉 RSI at 40.0 is neutral, lacking strong directional bias.
• 📉 Price below 50 DMA (₹4,070), showing short-term resistance.
• 📉 Dividend yield of 0.10% is low for income-focused investors.

📉 Company Negative News

• 📉 FII holding declined by 0.77%, reflecting cautious foreign sentiment.
• 📉 High valuation metrics may limit short-term upside despite strong fundamentals.

📈 Company Positive News

• 📈 PAT growth of 31.5% YoY supports earnings strength.
• 📈 Strong domestic demand in infrastructure and power cable segments continues to drive revenue.
• 📈 Expansion into EHV cables and exports expected to boost margins.

🔌 Industry

• 🔌 Electrical and cable manufacturing sector benefits from infrastructure push and electrification projects.
• 📉 Risks include raw material price volatility and project execution delays.

✅ Conclusion

• 📈 KEI Industries is a strong swing trade candidate with solid fundamentals and institutional support.
• 🎯 Entry near ₹3,950–₹3,980 with exit around ₹4,200–₹4,300 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin expansion and export growth for sustained upside.

I can also compare KEI with Polycab or Finolex Cables to identify stronger swing setups in the power cable segment.