KEI Industries Ltd.
NSE: KEIKEI Industries Ltd.: A 30-second snapshot
KEI Industries, an NSE-listed wire and cable manufacturer classified in the Infrastructure sector, trades at ₹5,144.7 — up 52% over 12 months and within 3% of its 52-week high. The stock sits above both its 50-DMA (₹4,635) and 200-DMA (₹4,278), with RSI at 62.7. A trailing PE of 53.2 and debt-to-equity of 3.8 are set against a 5-year revenue CAGR of 18.7% and earnings CAGR of 25.5%; the dominant near-term news event is an Income Tax Department search concluded in mid-May 2026 whose regulatory implications remain open.
P/E
53.2
Forward P/E
36.9
ROE
+14.8%
Debt / Equity
3.80
Profit Margin
+7.8%
Div. Yield
+0.1%
5Y ROE > 15%
2/5
5Y FCF > 0
2/5
Quality
58/100
News
8 headlines · 1 positive · 5 negative
KEI Industries: Income Tax Department Concludes Search and Seizure Operations - scanx.trade
scanx.trade
KEI Industries Under Scanner: Company confirms Income Tax search operations at multiple locations; check key details - Zee Business
Zee Business
Multibagger stock KEI Industries under income tax department's scanner. Check details - Mint
Mint
KEI Industries stock falls over 2% as I-T Dept conducts search operations at multiple locations: Report - Moneycontrol.com
Moneycontrol.com
KEI Industries Q4 Results: Profit jumps 26%, margin expands - CNBC TV18
CNBC TV18
Recent context
- ·Income Tax Department search and seizure operations at KEI Industries offices and plants were reported by multiple outlets on 7 May 2026 and confirmed concluded by 14 May 2026; the company confirmed the searches at multiple locations.
- ·KEI Industries reported Q4 FY26 results with profit up 26% year-on-year and margin expansion, per CNBC TV18 on 4 May 2026 — the quarter preceded the IT-department action.
- ·The stock fell approximately 2–3% intraday on the day of the IT-search news but has since recovered; the 3-month price change stands at +12.1% and the 52-week drawdown is only −3.0%, indicating the price action has largely absorbed the news event to date.
Strengths
- +Revenue has compounded at 18.7% annually over 5 years while earnings have grown at 25.5% annually over the same period, indicating operating leverage on a large capital base.
- +The stock is above both its 50-DMA (₹4,635) and 200-DMA (₹4,278) simultaneously, with the current price (₹5,144.7) representing a 10.9% premium to the 50-DMA and 20.3% premium to the 200-DMA.
- +At a trailing PE of 53.2, KEI is the second-lowest-valued stock among the 6 infrastructure peers with available PE data; ABB India trades at 87.1x and CG Power at 108.6x, while L&T is at 33.4x.
- +Q4 FY26 results showed profit growth of 26% and margin expansion, reported in early May 2026 — the one positive news signal in an 8-article sample dominated by the IT-search coverage.
Weaknesses
- −The Income Tax Department conducted search and seizure operations at multiple KEI Industries locations around 7 May 2026; the company confirmed the action. Such searches carry governance and regulatory uncertainty that has not been resolved as of the run date.
- −Debt-to-equity stands at 3.8 with a rising debt trend; ROE exceeded 15% in only 2 of the years tracked, and FCF was positive in only 2 of the same years — reflecting uneven earnings quality despite strong headline profit growth.
- −News sentiment is negative: 5 of 8 recent articles carry a negative classification, and the overallLabel from the sentiment engine is negative, driven predominantly by the IT-department search coverage.
- −The forward PE of 36.9 implies the market is pricing in continued rapid earnings growth; the quality score of 48 (ranked 2nd of 6 peers) and a profit margin of 7.8% leave limited buffer if that growth trajectory is interrupted.
Open questions
- ?Does the Income Tax Department search relate to a specific business transaction, a promoter action, or a broader industry pattern — and what has the company communicated about the scope and potential outcome?
- ?Given that FCF has been positive in only 2 of the available fiscal years while earnings have compounded at 25.5% annually, where is cash going — working capital build, capex, or debt servicing — and is that consistent with the company's stated growth plan?
- ?With a forward PE of 36.9 already embedding meaningful earnings growth, how sensitive is the valuation to a one- or two-year earnings disruption from regulatory or operational headwinds?
- ?How does KEI's debt-to-equity of 3.8 compare to the capital structure of sector peers at a similar stage of their growth cycle, and is the rising debt trend a function of growth investment or operational cash shortfalls?
Peer comparison: Infrastructure
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| KEI | KEI Industries Ltd.You're viewing | 53.2 | +14.8% | 48 |
| Industry avg | across 5 peers | 69.5 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 52.0 | — | 57 |
| ABB | ABB India Ltd. | 87.1 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.6 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹5,144.70
SMA 50
₹4,635.20
SMA 200
₹4,277.74
RSI (14)
62.7 (neutral)
From 52w high
-3.0%
1Y return
+52.1%
3M return
+12.1%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highIncome Tax Department conducted search and seizure operations across multiple KEI Industries offices and plants around 7 May 2026. Confirmed by the company; covered by Mint, Moneycontrol, and Zee Business. The stock fell 2–3% intraday on the news. The governance and regulatory implications of an active IT-department search remained unresolved as of the run date.
- mediumDebt-to-equity of 3.8 with a rising debt trend in the persistence data. ROE exceeded 15% in only 2 of the years available, indicating uneven capital efficiency. FCF was positive in only 2 of the available years, suggesting earnings quality has been inconsistent despite a reported 5-year earnings CAGR of 25.5%.
- mediumTrailing PE of 53.2 compresses to a forward PE of 36.9, implying the market is pricing in substantial earnings growth. Profit margin stands at 7.8%. If the earnings trajectory is disrupted — for instance by the ongoing IT-department action — the premium multiple carries meaningful downside.
- low1-year price change data is unavailable for all 5 infrastructure peers in the comparison set, preventing a sector-relative price performance ranking. ROE data is also missing for 3 of 5 peers, limiting sector benchmarking.
Cross-section contradictions
- The stock is up 52% over 12 months and trades above both the 50-DMA (₹4,635) and 200-DMA (₹4,278), yet 5 of 8 recent news items are negative and the dominant news event is an active IT-department search — an unusual divergence between price momentum and governance news flow.
- Only 2 of the available fiscal years show positive FCF, yet the 5-year earnings CAGR is reported at 25.5%, suggesting working-capital consumption or capitalisation choices are absorbing cash despite headline profit growth.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days