KEI Industries shares gain post Q4 results. Here's why
Net sales for the quarter rose 18.75 per cent YoY to Rs 2,319.28 crore compared with Rs 1,952.93 crore in the year-ago quarter.
- May 3, 2024,
- Updated May 3, 2024 6:46 PM IST
Shares KEI Industries Ltd were trading higher on Friday after better than expected March quarter results. The company reported a 22 per cent year-on-year (YoY) rise in consolidated profit from continuing operations at Rs 168.59 crore for the March quarter compared with Rs 138.10 crore in the same quarter last year. The company management retained its guidance of 15 per cent for revenue and 20 per cent-plus for PAT compounded annually over five years.
Net sales for the quarter rose 18.75 per cent YoY to Rs 2,319.28 crore compared with Rs 1,952.93 crore in the year-ago quarter. Ebitda for the quarter came in at Rs 259.52 crore, up from Rs 208.87 crore in the corresponding quarter last year. Profit margin stood at 7.27 per cent against 7.07 per cent YoY, KEI Industries said in a note.
"We remain sanguine about KEII’s promising growth prospects and maintain HOLD rating with a higher Rs 4,444 target price vs earlier Rs 3,804. A 20 per cent-plus earnings CAGR and healthy RoE (20 per cent), RoCE, (28 per cent) and RoIC (37 per cent) in FY26E should sustain its premium valuation. Strong OCFs (Rs 600 crore annually) will be deployed towards planned capex," Systematix Institutional Equities said.
On Friday, the stock was trading 0.5 per cent higher at Rs 4,015.30 on BSE.
KEI Industries said domestic institutional wire and cable sale stood at Rs 676 crore in the March quarter against Rs 692 crore YoY. Domestic Institutional EHV cable sale stood at Rs 220 against Rs 99 crore YoY. In total institutional cable sale, including exports, contributed 44.62 per cent to total sales against 46.85 per cent in Q4FY23.
Total Institutional sale including export increased was up 13.14 per cent YoY for the quarter.
Shares KEI Industries Ltd were trading higher on Friday after better than expected March quarter results. The company reported a 22 per cent year-on-year (YoY) rise in consolidated profit from continuing operations at Rs 168.59 crore for the March quarter compared with Rs 138.10 crore in the same quarter last year. The company management retained its guidance of 15 per cent for revenue and 20 per cent-plus for PAT compounded annually over five years.
Net sales for the quarter rose 18.75 per cent YoY to Rs 2,319.28 crore compared with Rs 1,952.93 crore in the year-ago quarter. Ebitda for the quarter came in at Rs 259.52 crore, up from Rs 208.87 crore in the corresponding quarter last year. Profit margin stood at 7.27 per cent against 7.07 per cent YoY, KEI Industries said in a note.
"We remain sanguine about KEII’s promising growth prospects and maintain HOLD rating with a higher Rs 4,444 target price vs earlier Rs 3,804. A 20 per cent-plus earnings CAGR and healthy RoE (20 per cent), RoCE, (28 per cent) and RoIC (37 per cent) in FY26E should sustain its premium valuation. Strong OCFs (Rs 600 crore annually) will be deployed towards planned capex," Systematix Institutional Equities said.
On Friday, the stock was trading 0.5 per cent higher at Rs 4,015.30 on BSE.
KEI Industries said domestic institutional wire and cable sale stood at Rs 676 crore in the March quarter against Rs 692 crore YoY. Domestic Institutional EHV cable sale stood at Rs 220 against Rs 99 crore YoY. In total institutional cable sale, including exports, contributed 44.62 per cent to total sales against 46.85 per cent in Q4FY23.
Total Institutional sale including export increased was up 13.14 per cent YoY for the quarter.