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KEI Industries is an established player in the Electricals and Cables sector, operating under the stock ticker KEI.
With a market capitalization of Rs. 30,804.7 Crores, the company specializes in the manufacturing, selling, and marketing of a wide array of wires and cables both in India and globally.
The company's operations are divided into three main segments:
KEI Industries manufactures various types of cables, including extra-high voltage, high tension, low-tension power cables, control and instrumentation cables, as well as specialized cables like solar, fire-resistant, and EV charging cables. They also produce stainless steel wires and offer a range of engineering and construction services for power transmission and distribution systems.
The company has a significant international presence, exporting products to approximately 60 countries and catering to multiple sectors such as power, railways, automotive, and infrastructure.
Founded in 1968, KEI Industries is headquartered in New Delhi, India. In the last twelve months, the company reported revenues of Rs. 9,190.2 Crores. It also distributes dividends to its shareholders with a yield of 0.23% per year, having returned Rs. 7.5 per share over the past year.
KEI Industries has experienced substantial growth, with a 77.1% increase in revenue over the past three years, although this period also saw a 6% dilution of shareholder holdings.
Summary of KEI Industries's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
The management of KEI Industries provided a positive outlook, emphasizing strong growth driven by capacity expansion and market opportunities. Key points include:
Growth Targets: Aiming for 19-20% volume growth in FY26, supported by brownfield expansions (Chinchpada, Pathredi) and greenfield projects (Sanand, Gujarat). Sanand's first phase (LT/HT cables) will commence production by Q1 FY26, with a capex of INR 800"“1,000 crores.
Margin Improvement: EBITDA margins are expected to stabilize at ~11% in FY25 and reach 12.5% by FY28, driven by operational leverage, product mix optimization, and rising exports.
Export Focus: Targeting 30"“35% export growth in cables/wires (excluding EPC), with the US, Australia, Middle East, and Africa as key markets. Exports are projected to contribute 15"“17% of sales in 2"“3 years.
Segment Performance:
Order Book: INR 3,871 crores as of December 2024, with healthy pipelines in domestic cables (INR 2,148 crores) and exports (INR 571 crores).
Long-Term Vision: Targeting INR 25,000 crores revenue by 2030, supported by expansions (Baroda plant) and a diversified product portfolio, including HVDC capabilities from FY27.
Debt & Liquidity: Post-QIP (INR 2,000 crores raised), net debt reduced, with plans to maintain healthy ROCE (24"“25%, rising to 28% in 3"“4 years).
Overall, management remains bullish on domestic and international demand, leveraging capacity additions and a balanced product mix to sustain growth and margin expansion.
Last updated: Jan 25
1. When should we expect traction in the EHV segment, and what caused the weakness?
Weakness in EHV was due to delays in ROW permissions. Capacity was repurposed for HT cables. EHV order book is INR 598 crore, with execution expected from Q1 FY26, targeting Rs.550"“600 crore annual sales. Margins are 4-5% higher for EHV but impact is minimal (~Rs.8 crore EBITDA loss annually).
2. What is the volume growth and inventory loss impact due to copper price volatility?
Production volume grew 28% in Q3, with 16"“17% sales volume growth expected for FY25. Inventory increased for future sales scaling. No significant inventory losses reported.
3. How is the retail (B2C) segment growing amid industry-wide wire market challenges?
Retail grew 31% YoY in Q3, driven by expanded dealer networks (2,060 active dealers), influencer engagement, and geographic reach. Focus remains on maintaining 20"“25% long-term growth.
4. What is the growth and margin outlook for FY26 across segments?
Targeting 19"“20% volume growth via new capacities (Sanand plant Phase 1 by Q1 FY26). EBITDA margins to stabilize at ~11%, improving to 12.5% by FY28 with economies of scale. Exports aim for 15"“17% of total sales.
5. Why are creditors' days reduced, and how does this benefit margins?
Creditor days reduced to 60 from 120 pre-COVID by shifting to cash purchases, lowering interest costs (LC utilization down from Rs.1,000 crore to Rs.100 crore). Benefits are liquidity-driven, not direct margin improvement.
6. What drove delays in EHV execution, and will Q4 see recovery?
Delays stemmed from ROW issues and prioritizing HT cable orders. Q4 EHV sales will remain low (~Rs.50"“60 crore). Capacity fungibility limits EBITDA impact (Rs.8 crore annual loss).
7. Which end markets are driving domestic institutional growth?
Solar projects, power distribution upgrades (underground cabling), data centers, and infrastructure. Segments are not split by contribution due to reliance on EPC contractors.
8. How will HVDC projects and Sanand capex impact margins?
Sanand's HVDC capacity (operational by March 2026) will boost exports with higher margins. Current EBITDA margins for exports are ~11%, rising with HVDC adoption. Freight costs for US exports are ~8% of sales.
9. What is the long-term growth strategy towards Rs.25,000 crore revenue by 2030?
20% CAGR via Sanand and upcoming Vadodara expansions. Retail (50%+ sales) and exports (15"“17% target) are key. ROCE to rise from 24"“25% to 28% in 3"“4 years.
10. How do EHV economics compare to base business?
EHV margins (14"“15%) are higher but contribute only 6% of sales. Volatility is minimal due to portfolio diversification. Focus remains on balanced growth across segments.
Technicals: Bullish SharesGuru indicator.
Growth: Awesome revenue growth! Revenue grew 18.2% over last year and 77.1% in last three years on TTM basis.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
No major cons observed.
Comprehensive comparison against sector averages
KEI metrics compared to Industrial
| Category | KEI | Industrial |
|---|---|---|
| PE | 44.41 | 37.91 |
| PS | 3.08 | 2.90 |
| Growth | 18.2 % | 13.1 % |
KEI vs Industrial (2021 - 2025)
Valuation | |
|---|---|
| Market Cap | 28.35 kCr |
| Price/Earnings (Trailing) | 44.41 |
| Price/Sales (Trailing) | 3.08 |
| EV/EBITDA | 28.82 |
| Price/Free Cashflow | 98.85 |
| MarketCap/EBT | 33 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 9.19 kCr |
| Rev. Growth (Yr) | 19.64% |
| Rev. Growth (Qtr) | 8.02% |
| Earnings (TTM) | 638.34 Cr |
| Earnings Growth (Yr) | 9.38% |
| Earnings Growth (Qtr) | 6.45% |
Profitability | |
|---|---|
| Operating Margin | 9.35% |
| EBT Margin | 9.35% |
| Return on Equity | 18.46% |
| Return on Assets | 12.91% |
| Free Cashflow Yield | 1.01% |
Analysis of KEI Industries's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Segment - Cables & Wires | 94.7% | 2.4 kCr |
| Segment - EPC Projects | 3.1% | 75.9 Cr |
| Segment - Stainless Steel Wire | 2.2% | 55.1 Cr |
| Total | 2.5 kCr |
Investor Care | |
|---|---|
| Dividend Yield | 0.25% |
| Dividend/Share (TTM) | 7.5 |
| Shares Dilution (1Y) | 5.89% |
| Diluted EPS (TTM) | 70.24 |
Financial Health | |
|---|---|
| Current Ratio | 2.86 |
| Debt/Equity | 0.09 |
| Debt/Cashflow | 1.94 |
Understand KEI Industries ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| ANIL GUPTA | 11.4% |
| Projection Financial & Management Consultants Private Limited | 8.27% |
| ANIL GUPTA HUF (Karta- Anil Gupta) | 4.87% |
| Shubh Laxmi Motels & Inns Private Limited | 3.64% |
| KOTAK MAHINDRA TRUSTEE CO LTD A/C KOTAK NIFTY MIDCAP 150 INDEX FUND | 3.42% |
| Soubhagya Agency Private Limited | 3.27% |
| MOTILAL OSWAL ARBITRAGE FUND | 2.82% |
| CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO MANUFACTURING FUND | 2.35% |
| SMALLCAP WORLD FUND, INC | 2.1% |
| HSBC MULTI ASSET ALLOCATION FUND | 2.08% |
| KEI Cables Private Limited | 1.65% |
| AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS NIFTY 500 INDEX FUND | 1.63% |
| HDFC MUTUAL FUND - HDFC NIFTY LARGE MIDCAP 250 INDEX FUND | 1.27% |
| FRANKLIN BUILD INDIA FUND | 1.15% |
| ICICI PRUDENTIAL S&P BSE 500 ETF | 1.13% |
| Dhan Versha Agency Private Limited | 1.05% |
| EDELWEISS CONSUMPTION FUND | 1.01% |
| ARCHANA GUPTA | 0.88% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of KEI Industries against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| HAVELLS | Havells IndiaConsumer Electronics | 1 LCr | 20.99 kCr | +7.15% | +2.51% | 71.64 | 4.78 | +15.14% | +18.43% |
| POLYCAB | Polycab IndiaCables - Electricals | 82.84 kCr | 21.23 kCr | +6.91% | -2.24% | 44.42 | 3.9 | +24.92% | +11.16% |
| APARINDS | Apar IndustriesOther Electrical Equipment | 22.25 kCr | 17.94 kCr | -4.32% | -29.42% | 27.55 | 1.24 | +13.09% | -2.89% |
| VGUARD | V-Guard IndustriesHousehold Appliances | 15.52 kCr | 5.4 kCr | +0.96% | +3.95% | 51.94 | 2.87 | +15.32% | +27.60% |
| FINCABLES | Finolex CablesCables - Electricals | 13.22 kCr | 5.32 kCr | -3.46% | -14.58% | 19.02 | 2.49 | +6.24% | +8.52% |
| RRKABEL | R R KABELCables - Electricals | 10.99 kCr | 7.21 kCr | +7.98% | -41.37% | 42.08 | 1.52 | - | - |