New Delhi. Kei Industries is a name that has given more than 1000% return to investors in the last five years. While its stock was around Rs 300 in June 2020, in June 2024 it went above Rs 5,000. But after this it has fallen by 22% and now it is trading around Rs 3,748.
KEI’s earnings still strong
Kei Industries works in three segments – cables and wire, stainless steel wire, and EPC projects. The company has eight manufacturing plants, and FY25 came from 13% sales exports. By March 2025, the company had an export order of Rs 810 crore. In the last five years, the income of the company has doubled from 4,185 crores to 9,722 crore. However, the operating margin i.e. Ebitda remains around 10.8%. Net profit has also increased from 270 crores to 696 crore rupees.
Find earnings in FY26 and FY27
According to Bloomberg, analysts believe that the company’s revenue growth in FY26 and FY27 can live around 18% and 19%. At the same time, Jefferies say that the company’s earnings can increase at the rate of 31% in the next three years, especially due to the retail segment. According to the report of Jefferies, if the share of retail and export revenue decreases, this growth will not last.
Increasing challenge in market – Ultratech entry
Ultratech Cement is now preparing to enter the business of wire. His distribution network and relationship with contractors are already stronger, which can become a threat to veterans like Kei, Polycab, Havells – especially after 2027.
Copper prices can also become headache
The copper prices used in wire manufacturing are related to the international market. Due to the possibility of US tariff policy and global recession, it has seen huge ups and downs, which can also affect the margin of KEI.
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