KEI Industries Q2 profit climbs 31% on-year to Rs 140 crore, revenue grows 21%; stock jumps 3%

Shares of KEI Industries jumped nearly 3 percent in early trade on November 1, post registering solid profit growth of 31 percent in Q2 numbers.

At 2:01 pm, the KEI Industries stock was trading 2.43 percent higher at Rs 2460.7 on NSE.

KEI Industries, the electrical wires & cables manufacturer, has recorded a standalone profit of Rs 140.2 crore for the quarter ended September FY24, growing 31.2 percent over a year-ago period. Revenue from operations during the quarter grew by 21 percent to Rs 1,946.6 crore compared to the same period last fiscal.

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KEI Industries EPS has increased to Rs. 15.54 in September 2023 from Rs. 11.86 in September 2022.

Brokerage Views

Brokerage firm Prabhudas Lilladher has assigned a ‘buy’ rating to the KEI Industries stock with a target price of Rs 2,908 per share in a report released on September 25, 2023. The report further stated, “We introduce FY26 estimates and upgrade the stock to ‘Buy’ from Hold as we roll forward to Sep’25E, revised target price of Rs 2,908 @ 33x FY26 EPS (Rs 2,319 earlier).”

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“We met management of KEI Industries (KEI) to gauge the demand, competitive scenario and capacity constraints. The company has maintained its healthy revenue growth guidance at 16-17 percent and expects 11 percent+ margins in the near term, given strong demand outlook in sectors like Infra/Railway/Data Centres etc.”

Stock Performance

KEI Industries stock has given a return of 30.65 percent over the last six months. The benchmark Nifty50 index has given a return of 4.77 percent over the same duration.

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