The KEI Industries stock closed higher in trade today after the firm reported a 45.15% rise in Q2 net profit. The stock closed 13.91% or 42.60 points higher at 348.90 level on the BSE. The stock which opened at 320.20 level rose to an intra day high of 363.95 compared to previous close of 306.30.
The small cap stock has been gaining for the last seven days and gained 38.45% during the period.
It opened with a gain of 4.54% today. The stock has gained 6.10% during the last one year but lost 7.11% since the beginning of this year.
It reported a 45.15% year on year rise in its Q2 net profit to Rs 41.37 crore, defying the consensus estimates by 20%.
Its standalone revenue came at Rs 996.79 crore, a rise of 32.23% yoy and 12.77% qoq.
Strong performance in its cables (80% of sales mix) and stainless steel wires segments (3.6% of sales mix) drove revenue growth in the quarter.
Its standalone revenue rose 32.2% yoy to Rs 996.8 crore in Q2FY19 compared to Rs 753.8 crore in Q2FY18, beating the estimates by 13%. Earnings before interest, tax, depreciation and amortization (EBIDTA) rose 32.2% yoy to Rs 100.8 crore for the quarter, ahead of the estimates by 16%. However, the firm logged flat EBITDA margin at 10% due to higher operating expenses.
10 of 11 brokerages rate the stock "buy" or 'outperform' and one "hold" , according to analysts' recommendations tracked by Reuters.
The firm is engaged in the manufacture and supply of power and other industrial cables. The company's segments are cables, which consists of extra high voltage (EHV), high tension (HT) and low tension (LT) power cables, control and instrumentation cables, winding wires, and flexible and house wires; stainless steel wire, which consists of stainless steel wires, and turnkey projects.