KEI In­dus­tries Ltd

Money Times - - Bull’s Eye -

(BSE Code: 517569) (CMP: Rs.356.80) (FV: Rs.2) By Pratit Nayan Pa­tel

Com­pany Back­ground: In­cor­po­rated in 1968, New Delhi based KEI In­dus­tries Ltd (KEI) man­u­fac­tures and sup­plies power and other in­dus­trial ca­bles. It is ranked amongst the top three ca­ble man­u­fac­tur­ing com­pa­nies in In­dia. It op­er­ates through the fol­low­ing seg­ments: Ca­bles; Stain­less Steel Wire; and Turnkey Projects. It of­fers ex­tra high volt­age (EHV) ca­bles; high and medium volt­age (HMV) ca­bles; high ten­sion (HT) and low ten­sion (LT) ca­bles; con­trol and in­stru­men­ta­tion ca­bles; spe­cial­ity ca­bles; flex­i­ble and house wires; sub­mersible ca­bles; marine and off­shore ca­bles; so­lar ca­bles; ther­mo­cou­ple ex­ten­sion/com­pen­sat­ing ca­bles; PVC/poly wrapped wind­ing wires; stain­less steel wires; and wind­ing wires. It also pro­vides rub­ber ca­bles, bat­tery ca­bles, panel wiring, fire wires, mo­tor coil leads and low tem­per­a­ture in­stal­la­tions. In ad­di­tion, it of­fers in­te­grated de­sign, en­gi­neer­ing, ma­te­rial pro­cure­ment, field ser­vic­ing, con­struc­tion and project man­age­ment ser­vices for project man­age­ment and con­trol, trans­mis­sion sys­tems, power gen­er­a­tion projects, sub­sta­tions, ca­ble so­lu­tions, over­head trans­mis­sion lines, in­fra­struc­ture and civil works. Its prod­ucts find ap­pli­ca­tion in var­i­ous in­dus­tries like power, oil re­finer­ies, rail­ways, au­to­mo­biles, ce­ment, steel, fer­til­iz­ers, tex­tiles and real es­tate.

Fi­nan­cials: With an eq­uity cap­i­tal of Rs.15.78 crore and re­serves of Rs.654.87 crore, KEI’s share book value works out to Rs.76.7. The pro­mot­ers hold 45.93% of the eq­uity cap­i­tal, Mu­tual Funds hold 11.39%, FPIs hold 10.84% and well-known in­vestor Ashish Ka­cho­lia holds 2.75%, which leaves 29.09% stake with the in­vest­ing pub­lic.

Per­for­mance Re­view: For FY18, KEI re­ported

55% higher PAT of Rs.144.76 crore on 24% higher sales of Rs.3503.12 crore and an EPS of Rs.18.5. For Q2FY19, it re­ported 45% higher PAT of Rs.41.37 crore on 32% higher sales of Rs.996.8 crore and an

EPS of Rs.5.3. For H1FY19, it re­ported 31% higher

PAT of Rs.73.55 crore on 19% higher sales of Rs.1880.69 crore and an EPS of Rs.9. Its bot­tom­line has grown at 62% CAGR over the last 3 years.

It paid 50% div­i­dend for FY18.

In­dus­try Over­view: Ac­cord­ing to IBEF, In­dia is the world’s third largest pro­ducer and fourth largest con­sumer of elec­tric­ity in the world. In­dia recorded elec­tric pro­duc­tion of 1201.5 bil­lion units (BU) in FY18, up 56% YoY. The power trans­mis­sion sec­tor in In­dia is cru­cial for elec­tric­ity sup­ply. The re­cently launched ‘Saub­hagya’ scheme, which aims at elec­tri­fy­ing all ru­ral house­holds, cou­pled with the ris­ing share of re­new­able ca­pac­ity de­mands ad­di­tion in In­dia’s trans­mis­sion in­fra­struc­ture. The de­mand for en­ergy is bound to rise in the years to come on the back of sus­tained eco­nomic growth, ris­ing ur­ban­i­sa­tion and ris­ing per capita en­ergy con­sump­tion.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.