1. At a Glance
KEI Industries is India’s silent multibagger. They make electrical cables — but not the boring kind. We’re talking EHV (Extra High Voltage), HT (High Tension), and LT (Low Tension) cables for power infrastructure, real estate, exports, and EPC projects. And they’ve done it while staying debt-light, ROCE-bright, and profit-tight.
2. Introduction with Hook
Let’s be honest.
When you hear “KEI”, you probably think, “Yeh kya company hai?” — and that’s exactly what smart investors want you to keep thinking while they quietly get rich.
Over the last 10 years, KEI’s stock has compounded at 47% CAGR — that’s 100x vibes. And they did it by wrapping copper in PVC, selling it across India and the Gulf, and… not screwing up. A rare feat.
3. Business Model – WTF Do They Even Do?
KEI has a 3-pronged setup:
- 🏗️ Institutional B2B Business: Big infra clients, metros, industrial EPC projects
- 🛒 Retail B2C Distribution: Wires sold via dealers to real estate, electricians, builders
- 🌍 Exports: 15% of sales come from Middle East, Africa, etc.
They also offer EPC services — Engineering, Procurement, and Construction — mainly in power transmission.
4. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 4,182 | 5,727 | 6,908 | 8,104 | 9,736 |
| Net Profit (₹ Cr) | 270 | 376 | 477 | 581 | 696 |
| ROCE (%) | 21% | 24% | 26% | 27% | 21% |
| ROE (%) | 15% | 17% | 18% | 18% | 15.6% |
| EPS (₹) | 29.9 | 41.7 | 52.9 | 64.3 | 72.9 |
🧠 5-year revenue CAGR: 15%, Profit CAGR: 22% – strong and consistent.
5. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹3,771 |
| P/E (TTM) | 51.8x |
| P/B | 6.2x |
| Dividend Yield | 0.11% (lmao) |
💰 Fair Value Range (EduEstimate™)
- Base Case (35x EPS of ₹73) = ₹2,555
- Bull Case (45x EPS of ₹80) = ₹3,600
- Current CMP = ₹3,771
🎯 Fair Value Range: ₹2,550 – ₹3,600
At CMP, it’s running ahead of fundamentals, but hey — when did the market ever care about logic?
6. What’s Cooking – News, Triggers, Drama
- 🧱 ₹2,000 Cr QIP raised in FY25 → Sanand (Gujarat) capex expansion 🔨
- 🚚 Exports up 15% YoY – Gulf and Africa infra driving demand
- 📈 Q4FY25 net profit up 35% YoY despite rising copper prices
- 💼 EPC business getting leaner — less focus on low-margin government projects
Bonus: They make zero noise on TV, but deliver double-digit growth like it’s a habit.
7. Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot | Value |
|---|---|
| Equity Capital | ₹19 Cr |
| Reserves | ₹5,767 Cr |
| Borrowings | ₹217 Cr (low) |
| Total Assets | ₹7,235 Cr |
🪙 Net cash-positive on an adjusted basis post QIP. Not bad for a company born in 1968.
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | Notes |
|---|---|---|
| FY23 | ₹514 Cr | Solid |
| FY24 | ₹610 Cr | Strong |
| FY25 | -₹32 Cr | 🚨 Working capital hiccup + inventory spike |
FY25 dip is likely temporary due to expansion-related stocking. But monitor this – negative CFO ain’t a flex.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 21.3% |
| ROE | 15.6% |
| OPM | 10% (stable) |
| Debtor Days | 67 |
| Inventory Days | 86 |
| Payable Days | 39 |
| Cash Conversion Cycle | 115 Days 😬 |
⛔ Working capital cycle worsened from 89 to 115 days — a slight red flag.
10. P&L Breakdown – Show Me the Money
- 💸 Sales: ₹9,736 Cr
- 🧾 EBITDA: ₹991 Cr
- 💰 PAT: ₹696 Cr
- 📉 Depreciation + Interest: ₹126 Cr
- 🎁 Other Income: ₹72 Cr
- ✂️ Dividend Payout: ~5% 🤏
Despite massive growth, they prefer to reinvest over rewarding shareholders. Because growth > greed.
11. Peer Comparison – Who Else in the Game?
| Peer | P/E | ROE | OPM | Market Cap |
|---|---|---|---|---|
| Polycab | 52.6x | 21.4% | 13.2% | ₹1.01 L Cr |
| KEI | 51.8x | 15.6% | 10.1% | ₹36.0K Cr |
| RR Kabel | 50.1x | 15.2% | 6.4% | ₹15.1K Cr |
| Finolex | 21.0x | 13.4% | 10.1% | ₹14.7K Cr |
⚡ Polycab is bigger and more efficient. KEI is solid #2 but catching up with cleaner financials and higher exports.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Mar 2025 |
|---|---|
| Promoter | 35.01% (dropping) 🔻 |
| FII | 25.8% (recent profit booking) 🔽 |
| DII | 23.5% (gaining confidence) 🔼 |
| Public | 15.7% |
| Shareholders | 1.97 Lakh (up from 93K in 2022!) 🚀 |
🎯 Retail knows this gem now — but promoter stake dilution is something to track.
13. EduInvesting Verdict™
KEI Industries is the India story in a cable — real estate boom, infra push, electrification, exports — all wrapped in copper and PVC.
- Profit CAGR? ✅
- ROCE 20%+? ✅
- Debt-free? ✅
- Valuation? 🚨 A bit spicy.
- Cash flow? 😬 FY25 weak but manageable.
If Polycab is the big brother, KEI is the hustler sibling who outgrows their clothes every year.
Verdict™: KEI is still quietly compounding while most folks argue over PSU vs PSU. Ignore it at your own financial peril. Or don’t — long-termers might thank you.
✍️ Written by Prashant | 📅 9 July 2025
Tags: KEI Industries, Polycab, Electrical Cables, Infra Growth, Sanand Capex, Power EPC, ROCE, EduInvesting
