KEI Industries Limited (KEI) AI Stock Analysis

KEI Industries Limited

(NSE:KEI)

Select Model

Rating:65Neutral

Price Target:INR 4,558.00▲(21.22% Upside)

Action:reiterated

Date:10/22/26

The score is supported primarily by strong financial growth with a conservatively levered balance sheet and a broadly positive earnings-call outlook with maintained growth/margin guidance. These positives are tempered by weak cash-flow conversion (recent negative free cash flow), a clearly bearish technical setup despite oversold signals, and a relatively expensive valuation (high P/E with a very low dividend yield).

Positive Factors

Strong revenue growth and demandRapid revenue growth is supported by broad demand across infrastructure, energy, construction and industrial projects rather than a single end market. The sizable order book provides medium-term visibility and supports continued utilization, scale benefits and expansion of the company’s market position.

Negative Factors

Weak cash conversion and inventory intensityNegative and volatile free cash flow means reported earnings are not currently converting consistently into cash. Elevated inventory and working-capital needs can absorb internally generated funds, increase dependence on normalization, and constrain the cash available for expansion, returns or other corporate uses.

KEI Industries Limited (KEI) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 362.34B
Dividend Yield: 0.12%
Average Volume (3M): 29.83K
Price to Earnings (P/E): 34.1
Beta (1Y): 1.73
Revenue Growth: 25.18%
EPS Growth: 32.49%
Country: India
Employees: 2,050
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

KEI Industries Limited Business Overview & Revenue Model

Company Description

KEI Industries Limited manufactures, markets, and sells wires and cables in India and internationally. It operates in three segments: Cable & Wires; Engineering, Procurement and Construction; and Stainless Steel Wire. The company offers extra-high vo...

How the Company Makes Money

KEI primarily makes money by manufacturing and selling wires and cables and earning revenue from the value added over input raw materials (notably copper and aluminium) through product design/specification, manufacturing, testing/certification, brand...

KEI Industries Limited Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q2-2027)|% Change Since:-15.41%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

The call was broadly positive, supported by strong Q2 and H1 revenue, EBITDA and profit growth, robust domestic demand, a sizable order book, positive U.S. demand, continued capacity expansion and maintained growth and margin guidance. The main negatives were the lower Q2 profit-after-tax margin, nearly flat export sales, ongoing EPC losses, a significant inventory build-up and the time required for Sanand to ramp up.

Positive Updates

Strong Q2 Revenue and EBITDA Growth

Q2 FY2027 net sales were INR 3,776 crore, up 38.52% year over year, while total wire and cable sales grew 39.5%. EBITDA increased to INR 401 crore from INR 311 crore, a growth of 28.69%, with an EBITDA margin of 10.62%.

Negative Updates

Lower Q2 Profit After Tax Margin

Although Q2 profit after tax increased to INR 262.45 crore from INR 203.51 crore, up 28.96%, the profit-after-tax margin declined to 6.95% from 7.46% in the prior-year period.

Company Guidance

Management maintained guidance for current-year growth of more than 25% in value terms, 25%+ growth, and an EBITDA margin of 11%; the broader guidance is 11%-12%, with progression from 11% to 11.5% and then 11.5% to 12%, to be completed in 2027 and 2028. The company expects 20% CAGR in future and in next three to four years, with profit after tax growth of 24% to 25% if top-line growth is 20%, while profit after tax margin will be close in the range of 7%-7.5%. If copper price do not move from here, 18%-20% volume growth will be there automatically; Sanand revenue is targeted at INR 150 crore-INR 200 crore per month in the current quarter and close to INR 250 crore-INR 300 crore in the third quarter, with phase two commercial production by end of March 2027, peak revenue in 2028, 2029, and asset turnover more than three and less than 4x. The company expects approximately INR 600 crore annually for next three to four years in capital expenditure, inventory to normalize by the end of the year and remain at the same holding level by March 2027, and ROE of 19%-20% and ROCE close to 23%-24% from the next year onward.

KEI Industries Limited Financial Statement Overview

Summary

Strong multi-year revenue and net income growth and a very low-leverage balance sheet support resilience. The main drag is cash-flow quality: operating cash flow has been volatile and free cash flow has been negative recently, pointing to weaker cash conversion and working-capital/capex strain despite reported profitability.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	133.93B	117.48B	96.08B	80.38B	68.53B	56.81B
Gross Profit	27.38B	22.96B	19.40B	17.05B	14.35B	12.40B
EBITDA	15.70B	13.88B	10.51B	8.73B	7.23B	5.86B
Net Income	10.56B	9.18B	6.96B	5.81B	4.77B	3.76B
Balance Sheet
Total Assets	96.19B	89.56B	72.35B	46.56B	37.70B	35.27B
Cash, Cash Equivalents and Short-Term Investments	6.98B	15.13B	19.15B	6.95B	4.80B	3.59B
Total Debt	3.50B	2.53B	2.17B	1.66B	1.62B	3.55B
Total Liabilities	24.16B	22.91B	14.49B	15.08B	11.81B	13.92B
Stockholders Equity	72.03B	66.65B	57.86B	31.48B	25.89B	21.36B
Cash Flow
Free Cash Flow	0	-3.66B	-7.30B	2.11B	4.16B	1.70B
Operating Cash Flow	0	8.88B	-322.13M	6.11B	5.14B	2.29B
Investing Cash Flow	0	-4.57B	-15.01B	-3.53B	-1.37B	-583.56M
Financing Cash Flow	0	-387.69M	19.19B	-717.64M	-2.56B	-313.54M

KEI Industries Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price3760.00

Price Trends

50DMA4700.63Negative

100DMA4996.11Negative

200DMA4818.45Negative

Market Momentum

MACD-258.34Positive

RSI24.94Positive

STOCH16.23Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KEI, the sentiment is Negative. The current price of 3760.00 is below the 20-day moving average (MA) of 4302.59, below the 50-day MA of 4700.63, and below the 200-day MA of 4818.45, indicating a bearish trend. The MACD of -258.34 indicates Positive momentum. The RSI at 24.94 is Positive, neither overbought nor oversold. The STOCH value of 16.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KEI.

KEI Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:KEI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:FINCABLES	72Outperform	INR 174.25B	21.79	―	0.79%	26.53%	29.17%
IN:POLYCAB	67Neutral	INR 1.18T	37.00	―	0.60%	40.99%	28.09%
IN:KEI	65Neutral	INR 359.63B	34.14	―	0.12%	25.18%	32.49%
IN:APARINDS	65Neutral	INR 657.41B	45.90	―	0.38%	23.42%	46.04%
IN:HAVELLS	65Neutral	INR 635.56B	38.23	―	0.99%	16.50%	13.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RRKABEL	53Neutral	INR 232.61B	34.60	―	0.46%	45.36%	66.42%

* General Sector Average

Performance Comparison

IN:KEI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:KEI	KEI Industries Limited	3760.00	-217.69	-5.47%
IN:APARINDS	APAR Industries Limited	15700.35	7194.66	84.59%
IN:FINCABLES	Finolex Cables Limited	1139.35	348.13	44.00%
IN:HAVELLS	Havells India Limited	1012.75	-472.63	-31.82%
IN:POLYCAB	Polycab India Ltd.	7800.00	211.22	2.78%
IN:RRKABEL	RR Kabel Ltd.	2056.60	673.41	48.69%

KEI Industries Limited Corporate Events

KEI Industries Publishes Unaudited Q2 and Half-Year FY 2025-26 Results

Oct 22, 2026

KEI Industries Limited has released its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, following review by the Audit Committee and approval by the Board of Directors on October 21, 2026...

KEI Industries Publishes AGM Notices in Line With SEBI Disclosure Norms

Aug 31, 2026

KEI Industries Limited has notified the stock exchanges that it has published statutory advertisements ahead of its upcoming Annual General Meeting. The notices, issued in line with Regulation 47 of SEBI’s Listing Obligations and Disclosure Req...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 22, 2026

KEI Industries Limited AI Stock Analysis