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KEI Industries Ltd Stock Analysis

Small Cap
Evaluated by 1805 users | BSE: 517569 | NSE: KEI |
Cable
KEI industries (KEIIL) incorporated in 1968, is engaged in manufacturing of high and low tension cables (EHT, HT and LT), control and instrumentation cables, house wires and stainless steel wires.It is among very few companies in India that manufactures speciality cables including braided...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
KEI Industries Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 000015.39%18.3%16.3%15.97%20.9%21.79%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 00002,0112,3512,6283,4664,2314,888
Y-o-Y Gr. Rt.-NANANANA16.9%11.8%31.9%22.1%15.5%
Adjusted EPS (Rs.) 00004.087.6911.2217.7325.3629.48
Y-o-Y Gr. Rt.-NANANANA88.5%45.9%58%43%16.3%
Book Value per Share (Rs.) 000039.3447.0158.4276.4298.11166.95
Adjusted Net Profit 000031.559.487.3139200264
Net Op. Cash Flow (Rs. Cr.) 0000199186-28.8191623-13
Debt to Cash Flow from Ops 00002.282.68-28.24.420.96-28.14
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
KEI Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NA19.4%23%15.5%
Adjusted EPS NA48.5%38%16.3%
Book Value per Share 033.541.970.2
Share Price 46.4% 34.8% 8.3% -2.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 000010.3817.7121.0826.0728.9623.09
Operating Profit Margin (%) 0000910.310.249.7911.1210.43
Net Profit Margin (%) 00001.572.533.334.014.735.4
Debt to Equity 00001.491.371.791.410.770.25
Working Capital Days 00000157169170165170
Cash Conversion Cycle 0000095107110105116
Entity Percentage Holding
Promoters 40.34%
Institutions 39.78%
Non-Institutions 19.88%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of KEI Industries Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that KEI Industries Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of KEI Industries Ltd's performance infers:

KEI Industries Ltd earnings have grown by 48.5%, whereas share price has appreciated 34.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of KEI Industries Ltd share prices over the last 10 years. Here is what we found out:

KEI Industries Ltd share price has appreciated 33.8% annually over the past ten years.

KEI industries (KEIIL) incorporated in 1968, is engaged in manufacturing of high and low tension cables (EHT, HT and LT), control and instrumentation cables, house wires and stainless steel wires.

It is among very few companies in India that manufactures speciality cables including braided cables, fire survival and zero halogen cables. The company has clientele like ACC, Chambal Fertilizers, Birla Copper, Larsen & Toubro, Suzlon Energy, Tata Power, INOX Multiplex, Intel Computers,

KEI industries (KEIIL) incorporated in 1968, is engaged in manufacturing of high and low tension cables (EHT, HT and LT), control and instrumentation cables, house wires and stainless steel wires.

It is among very few companies in India that manufactures speciality cables including braided cables, fire survival and zero halogen cables. The company has clientele like ACC, Chambal Fertilizers, Birla Copper, Larsen & Toubro, Suzlon Energy, Tata Power, INOX Multiplex, Intel Computers, ONGC, Wipro Software, ITC, Ranbaxy and many more.

Products

HT Cables- KEIIL manufactures HT XLPE cables up to 33KV at Bhiwadi plant. KEI offers variety of designs to suit different installations viz. Aerial Bunched cables, Water tight construction, Stainless steel armouring, for Offshore and Ship installations etc.

LT Cables-The Company manufactures LT power cables with PVC or XLPE insulation of voltage grade upto 3.3 KV.

Instrumentation cables- Under this, the company manufactures wide range of cables used by industries namely power generation and distribution, chemical and fertilizer industries and various other types of engineering industries.

Company also manufactures Rubber wires, house wires, single/multicore flexible wire, winding wires and stainless steel wires.

Milestones

1968: KEI industries was incorporated as a partnership company. The same year company commenced manufacturing of Switchboard Cables for DOT.

1985: KEIIL started manufacturing of control, instrumentation and thermocouple cables

1993: Company commenced manufacturing of PVC/XLPE Power cables up to 3.3 KV.

1994: Company diversified its business activities by foraying into Stainless Steel drawings with pilot plant.

1995: Company launched an IPO. 1996: KEIIL installed SSW plant at Bhiwadi.

1997: It established another plant at Bhiwadi for manufacturing of LT PVC / XLPE Cables.

2001: Company increased its manufacturing of rubber cables up to 11 KV.

2002: Company established JFTC Plant located at Silvassa

2005: Company upgraded its JFTC Plant located at Silvassa to manufacture existing cable range.

2006: Company expanded Bhiwadi unit to manufacture up to 33 kV HT XLPE Cables with Dry curing inert nitrogen gas and with triple extrusion (Single cross head) process. 2006: Company introduced ERP Baan S/W system in the company.

2007: KEIIL upgraded its Bhiwadi Unit to manufacture HT power cable up to 132 kV and LT cable. The same year company set up 100% EOU at Chopanki.

Future Plans

KEI industries is planning to set up dealer network in United Kingdom for general purpose projects and for Oil and Gas sector. It also plans to ventures into the Business of EHV Power Cables by way of having either a JV or Technical Collaboration with a cable company. The company also has interest in venturing into EPC Business with a nuclear team of professionals with prior experience in EPC Projects.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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