UBS has initiated coverage on KEI Industries with a ‘buy’ rating, setting a target price of ₹6,150 per share, reflecting a potential 40.8% upside from its closing price on August 19. The brokerage highlights KEI Industries as a dominant player in the cable and wire sector, holding a 40% market share in the domestic market.
UBS projects sustained growth in the cable and wire industry, benefiting KEI through increased market share in branded wires and potential expansion into switches and switchgear. The company’s focus on branded wires, which now represent 29% of its revenue, and planned geographical and manufacturing expansions are expected to drive a 22% CAGR in revenue from FY24-27.
The report also underscores KEI’s robust balance sheet and operational cash flow, bolstering its capacity for expansion and continued growth. However, risks include global economic slowdowns and delays in infrastructure development.
KEI Industries shares surged 4.3% intraday, reaching a high of ₹4,557 on the NSE. Over the past year, the stock has risen 78%, significantly outperforming the Nifty 50’s 27.2% gain.
