KEI Industries Ltd is poised for growth, with exports increasing, the Sanand ramp-up in progress, and retail expansion in focus. This presents a significant structural growth opportunity for the company. Analysts predict a 20-22% compound annual growth rate (CAGR) for revenue and net income from FY25 to FY28.
Current Market Performance
Currently, the stock is trading at 43 times the estimated earnings per share (EPS) for FY26 and 35 times the EPS for FY27, which are Rs 93 and Rs 114 respectively. Anticipating future growth, analysts have introduced projections for FY28 and adjusted valuations to September 2027.
Valuation and Target Price
Based on these assessments, KEI Industries Ltd is valued at 38 times the estimated EPS for September 2027, which is Rs 127. This valuation leads to a Buy rating, with an increased target price of Rs 4,827.
However, challenges such as significant delays in commissioning capacity and a slow addition of dealers could potentially limit the company’s channel sales growth in the future.
