At a Glance
KEI Industries, the wire and cable maestro, is trading at ₹3,816 with a P/E of 49.2. The company’s profits have grown at 22% CAGR in the past five years, and ROCE stands at a decent 21.3%. With land acquisitions for capacity expansion and QIP-fueled cash reserves, KEI is gearing up to electrify the market. But at nearly 6.3× book value, the stock price is hotter than a live wire.
Introduction
KEI started as a small-time cable maker in 1968 and now powers India’s high-voltage dreams. From households to megaprojects, their wires are everywhere. But with great power (literally) comes great valuation—investors are paying a Tesla-like premium for this wiring giant. The story is simple: strong growth, aggressive expansion, but expensive stock.
Business Model (WTF Do They Even Do?)
KEI earns money by selling:
- EHV, HT, and LT cables – power transmission backbones.
- Retail Wires – the stuff that goes into your house walls.
- EPC Projects – end-to-end cable installation and engineering.
The revenue mix is well-balanced: retail gives steady cash, EPC adds bulk orders, and exports (growing fast) bring forex glamour.
Financials Overview
FY25 Highlights:
- Revenue: ₹10,257 Cr
- EBITDA: ₹1,026 Cr
- Net Profit: ₹742 Cr
- OPM: 10%
- ROE: 15.6%
- ROCE: 21.3%
Q1 FY26 (Jun
