KEI Industries Ltd.
Infrastructure · NSE
52-week range
₹3,147 – ₹5,303
From 52w high
-3.8%
RSI (14)
65.4
vs SMA 50 / 200
↑ 50 · ↑ 200
KEI Industries (NSE: KEI) is a cable and wire manufacturer classified under Infrastructure, trading at ₹5,050 as of 11 May 2026, up 53% over the prior 12 months and above both its 50-DMA (₹4,627) and 200-DMA (₹4,261). The company reported a trailing PE of 52.7, a D/E of 3.8 with a rising debt trend, and a 5-year earnings CAGR of 25.5%, while the most material recent development is a confirmed Income Tax Department search at multiple company premises on 7 May 2026.
- ✓5-year revenue CAGR of 18.7% and earnings CAGR of 25.5% indicate sustained top-line and bottom-line expansion over the period reviewed.
- ✓The stock is trading above both its 50-DMA (₹4,627) and 200-DMA (₹4,261), with a 12-month price gain of 53.4% and a drawdown of only 4.8% from its 52-week high, reflecting strong recent price momentum.
- ✓Forward PE of 36.4 represents a 31% compression from the trailing PE of 52.7, consistent with analyst estimates pricing in continued earnings growth.
- ✓Among 6 infrastructure peers with available PE data, KEI ranks second-lowest at 52.7, behind only LT (33.8), suggesting relative valuation is not the highest in the peer group.
- ✗The Income Tax Department conducted search operations at KEI offices and plants on 7 May 2026, confirmed by the company. The nature, scope, and outcome of the search remain unresolved as of the run date, representing an open governance and regulatory uncertainty.
- ✗Debt-to-equity of 3.8 reflects a rising debt trend over the period reviewed; FCF was positive in only 2 of the available years, indicating that reported earnings growth has not consistently translated into free cash generation.
- ✗ROE exceeded 15% in only 2 of the available years, and the quality score of 48 out of 100 places KEI below several peers (BEL: 57) on composite quality metrics.
- ✗Profit margin of 7.8% is modest for a capital-intensive manufacturer carrying elevated debt, leaving limited cushion against input cost pressure or revenue shortfalls.
- ·KEI Industries confirmed on 7 May 2026 that the Income Tax Department conducted search operations at its offices and plants across multiple locations; shares fell 2–3% intraday on the day of disclosure, with coverage across Mint, Moneycontrol, NDTV Profit, and Zee Business.
- ·Mean analyst rating of 2.09 across 23 analysts (1–5 scale, lower = more constructive), with no price targets cited in this analysis per SEBI compliance requirements.
- ·Despite the IT-search news, the stock recovered to ₹5,050 by the run date, remaining above both key moving averages and only 4.8% below its 52-week high of approximately ₹5,303.
- ?What is the historical track record of IT-department searches in the cables and wires sector — how have peer companies' financials and stock prices evolved in the 6–18 months following similar regulatory actions?
- ?Does KEI's rising D/E trend reflect a deliberate working-capital strategy tied to order-book execution, or does it signal structural cash flow pressure given that FCF was positive in only 2 of the available years?
- ?How durable is the 18.7% revenue CAGR given the dependence on infrastructure capex cycles — what proportion of revenue is tied to government orders versus private sector demand?
- ?At a forward PE of 36.4, what earnings growth rate is implicitly required to justify the current price, and how does the IT-department search affect near-term order intake or receivables collection?
PE
52.7
Forward PE
36.4
ROE
+14.8%
Profit margin
+7.8%
D/E
3.80
Dividend yield
+0.1%
Quality score
48/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.