Should You Invest Now? KEI Industries Stock Climbs 59% in a Year with Strong Growth in Electrical Cables

KEI Industries, a leader in electrical wires and cables, posted steady growth in the September quarter, showing a 17% increase in revenue and a 10% rise in profit year-over-year. This growth was mainly fueled by strong demand in India, although results slightly missed analyst expectations, with lower EPC revenue and tighter margins due to fluctuating raw material costs.

The company serves industries like power, oil & gas, railways, and cement, exporting to over 60 countries. KEI aims for 15-17% revenue growth in 2024-25, with a strong order book and expanded production capacity supporting this goal. Global and domestic cable demand is on the rise, driven by infrastructure upgrades, expanding power grids, IT sector growth, and demand for fire-resistant and flexible cables. Within India, demand is also boosted by government policies, power sector reforms, real estate growth, and investments in electric vehicles and transportation infrastructure.

Renewable energy, especially solar and wind, is further boosting wire and cable demand globally. KEI’s annual report predicts the global cable industry will grow at a 9.1% annual rate, reaching $547.1 billion by 2032.

The company has been actively expanding, completing projects at Pathredi and Chinchpada, with a new Sanand plant expected to start in 2025-26. KEI also approved a ₹2,000 crore fundraising plan to fund these expansions and keep the company debt-free, with a positive track record of free cash flow and debt reduction.

KEI stock has outperformed with 59.1% returns in the last year, versus 24% for the BSE Sensex. Notably, analysts have become more bullish on KEI, with rising consensus ratings based on a system that evaluates analyst buy/sell recommendations.