KEI – Detailed Technical View
KEI is trading in a strong uptrend with price sustaining comfortably above key medium- to long-term MAs (100-DMA ~₹3350, 200-DMA ~₹3110), while short-term MAs (5/10/20-DMA ~₹3885-3910) are aligned in Buy, indicating robust trend strength despite recent volatility. Oscillators are largely positive: RSI(14) ~51 neutral-to-bullish, Stoch(9,6) ~60 Buy, Williams %R around -27 Buy, CCI near +99 Buy, Ultimate Oscillator ~65 Buy and ADX ~25 showing a healthy trending move; only STOCHRSI overbought and MACD slightly negative point to normal consolidation within an ongoing up-move. Pivot cluster around ₹3920-3950 (S1-R1) acts as key reference; dips towards ₹3900-3930 offer buy-on-decline opportunities for a move towards ₹3980-4020, with stops below ₹3880.
Fundamental Analysis – KEI Industries
KEI, a leading cables and wires manufacturer, reported FY25 revenue ~₹10,700 Cr and PAT ~₹790 Cr, trading at ~47-48x TTM P/E and ~6.5x P/B – a premium for its growth profile. Q2 FY26 showed 19% YoY revenue growth, 20% operating profit growth, 33% PBT growth and 31% PAT growth, with sequential gains indicating strong demand and execution. Targets ₹8,250 Cr+ revenue by FY26 at ~11.3% EBITDA margins, backed by ₹5,400 Cr order book, capacity expansions (Pathredi, Silvassa) and rising exports.
Today’s Buying Trigger in KEI
Buying surged due to technical bounce from ₹3920 pivot support, where Stoch/CCI/Williams %R flashed fresh Buy signals amid bullish long-term MAs, triggering “buy-on-dips” action. Sanand (Gujarat) cable plant’s Phase-1 commercial production start (~60,700 km capacity, ₹3,000 Cr revenue potential) and FY26 ₹8,250 Cr guidance boosted growth confidence, drawing positional flows.
Recent/Upcoming Events & Impact
Sanand Plant Phase-1 Live: Gujarat greenfield adds ~60,732 km LT/HT cable capacity; Q4 FY26 revenue ~₹3,000 Cr, enhancing topline visibility (positive re-rating).
Capex Expansion: ₹2,000 Cr plan includes ₹600 Cr EHV cables over 2 years, 25% capacity hike at Pathredi/Silvassa for high-margin growth.
Order Book/Guidance: ₹5,400 Cr book with retail/export focus; no major near-term negatives noted.
Positives vs Negatives
Positives:
19-20% YoY revenue/PAT growth with stable margins.
Capacity expansions (Sanand/Pathredi/Silvassa/EHV) for volume/margin upside.
₹5,400 Cr order book, 35% promoter holding, strong brand.
Bullish higher-timeframe technicals (MAs/ADX).
Negatives/Risks:
Rich valuation (~47x P/E) limits safety margin.
₹2,000 Cr capex risks (execution/delays).
Infra/realty cyclicality exposure.
Short-term overbought STOCHRSI/pullback risk.
Disclaimer & Disclosure
This report is for educational purposes only and not investment advice or buy/sell recommendation. Markets carry capital loss risks; consult SEBI-registered advisors. Data from public sources; no guarantees on accuracy. No positions/holdings in KEI; independent view only.