Stock of manufacturing and supply of electrical cables a financially robust company surged by 11% following the announcement of impressive third-quarter results
Manufacturing and supply of electrical cables One of the mid-cap stocks involved in the manufacturing and supply of electrical cables, including EHV, HT, and LT cables, catering to various sectors in India and abroad, has seen a significant surge of 10.84 percent. This increase follows a 19.81 percent year-over-year rise in revenue, with a target set at Rs. 5,041.
Stock Price Movement
During Thursday’s trading session, KEI Industries Limited’s shares surged to an intraday high of 10.84 percent from the previous close of Rs. 4,127.20. The stock opened at Rs. 4,108.80 and is currently trading at Rs. 4,486.75, with a high of Rs. 4,574.65 and a low of Rs. 4,104.05. The market capitalization now stands at approximately Rs. 42,872.06 crore.
Q3 FY25 Result Overview
In the latest quarterly results of KEI Industries Limited, the company’s consolidated revenue from operations increased by 19.81 percent year-over-year, from Rs. 2,059.37 crore in Q3 FY24 to Rs. 2,467.27 crore in Q3 FY25, and grew by 8.23 percent quarter-over-quarter from Rs. 2,279.65 crore in Q2 FY25.
Additionally, the company’s EBIDT has risen by 12.09 percent, from Rs. 215 crore in Q3 FY24 to Rs. 241 crore in Q3 FY25.
During Q3 FY25, KEI Industries Limited’s consolidated net profit increased by 9.38 percent year-over-year, reaching Rs. 164.81 crore compared to Rs. 150.67 crore in the same period last year. Compared to Q2 FY25, the net profit has increased by 6.46 percent, from Rs. 154.81 crore.
The basic earnings
Prabhudas Lilladher has issued a “buy” rating for KEI Industries Limited, setting a target price of Rs 5,041. This target price represents a potential upside of 22.14 percent from the stock’s previous day closing price of Rs. 4,127.20.
The rationale behind this target is based on KEI Industries’ projected 19-20 percent volume growth for FY26. This growth is expected to be fueled by capacity expansion and strong demand both domestically and for exports, with a target EBITDA margin of 11 percent. Although Q3FY25 showed significant growth in HT, LT cables, and housing wires, there was a decline in EPC/EHV revenues. However, it is anticipated that these revenues will rebound by FY26.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.