KEI Industries share price jumped 3.4% to Rs 2,349.05 today, reversing its 3-day losing streak. The stock fell 6.5% on Tuesday despite the company reporting a 17% jump in net profit to Rs 121.38 crore in Q1FY24, compared to Rs 103.76 crore in a year-ago period. Analysts at Nuvama attributed KEI investor’s negative reaction to the company’s results to its comparison with higher growth reported by C&W peers, which raised expectations for earnings upgrades for KEI as well. But they believe that the results were healthy and in line with management guidance. KEI Industries stock has surged 40% in the last six months and over 80% in the past one year. Nuvama has recommended a ‘Buy’ rating on the stock while Prabhudas Lilladher has maintained ‘Hold’ .
Should you buy, sell or hold KEI Industries stock?
Nuvama: Buy – Target Price: Rs 2650
“Given very strong demand for cables (also indicated by KEI) and with capacity expansion that KEI is executing, we expect its revenue to double over five years. Raising the target PE to 32x (from 27x) and rolling over to Q1FY26E lifts our target price to Rs 2,650 (from Rs 2,130); ‘BUY’.”