KEI Industries shares ended lower on Friday, October 23, extending their correction over the past six months. Despite the recent weakness, the cables and electricals stock has delivered a nearly 318% return over the past five years. Brokerage InCred Equities has upgraded its outlook on the stock, citing the company's sustained growth guidance, margin expansion driven by a favourable product mix, and rising exports.
The company has reported 28.94% annual jump in its consolidated net profit for the September quarter of financial year 2026-27.
KEI Industries reported 39% annual growth in revenue, 40% surge in EBITDA, and around 29% jump in profit after tax (PAT). The management has also revised tis financial year 2026-27 guidance to 25% and 11% EBITDA margin.
The brokerage remained bullish on the cables and electricals stock because of its sustained “growth guidance, Sanand plant ramp-up, margin expansion on product mix and rising exports.” However InCred Equities highlighted intensifying competition and upcoming industry capacity additions.
“Despite a healthy medium-term growth outlook, we lower our target multiple to 33x from 36x, factoring in intensifying competition and upcoming industry capacity additions, which could weigh on margins,” read InCred Equities report. However, the brokerage upgraded its rating for the company citing reasonable valuation.