Mehabe score: 5 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
KEI Industries Ltd was established in 1968 as a partnership firm under the name Krishna Electrical Industries. #. It manufactures cables and wires, with a product portfolio ranging from housing wires to Extra High Voltage (EHV) cables, and further diversifying into the Engineering, Procurement, and Construction (EPC) services for power and transmission projects.
Main Points
Milestones
It has a 5.2% market share in the total cables and wires industry and 7.3% in the organized cables and wires industry in FY 2018-19. #Site:KEIMain Symbol:KEI
Stock trades at 709.0, above its 50dma 677.76. It also trades above its 200dma 551.91. The stock remains bullish on techicals
The 52 week high is at 763.65 and the 52week low is at 319.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has delivered good profit growth of 34.31% CAGR over last 5 years
Weakness
– Promoter holding has decreased over last quarter: -1.11%
Competition
– The industry trades at a mean P/E of 35.5x. Paramount Comm. trades at the industry’s max P/E of 110.56x. KEI trades at a P/E of 23.3x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. KEI has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -3.4%. The max 1- month return was given by Paramount Comm.: a return of 3.22 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 1018.0 cr compared to Rs 745.0 cr for period ended Jun 2020, a rise of 36.6%
Operating Profits reported at Rs 114.0 cr for period ended Jun 2021 vis-vis 76.0 for period ended Jun 2020 .
Operating Margins expanded 99.7 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 7.47 compared to Rs 9.59 for previous quarter ended Mar 2021 and Rs 4.38 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4454.0 cr for period ended TTM vis-vis sales of Rs 4182.0 cr for the period ended Mar 2021, a growth of 6.1%. The 3 year sales cagr stood at 1.7%.
Net Profit reported at Rs 301.0 cr for period ended TTM vis-vis sales of Rs 270.0 cr for the period ended Mar 2021, rising 10.3%.
Company recorded a healthy Net Profit CAGR of 18.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 154.0 cr for period ended Mar 2021 vis-vis Rs -13.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 104% on a 1 Year basis vis-vis a return of 18% over the last 3 Years. – The compounded sales growth on a TTM bassis is -14% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is 7% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 18.09% vis-vis 18.49% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 16.76% vis-vis 17.03% for Mar 2021
Conclusion
– has reduced debt.
– has delivered good profit growth of 34.31% CAGR over last 5 years – Promoter holding has decreased over last quarter: -1.11%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 677.76 and is trading at 709.0, thus bullish price action wise.
