Posted on February 21, 2025, by Niftynews
KEI Share Price a leading electrical wires and cables manufacturer, surged by more than 5% on February 21, 2025, after Morgan Stanley initiated coverage of the stock with an ‘Overweight’ rating. The firm has set a target price of Rs 4,391, reflecting an impressive 17.66% upside from its previous closing price of Rs 3,731.90 on February 20.
KEI Share Price Performance on February 21, 2025
On February 21, KEI Industries share price hit an intraday high of Rs 3,930.95, marking a 5.33% rally. This surge comes following Morgan Stanley’s favorable rating and target price, signaling significant investor confidence. The brokerage firm cited multiple domestic growth drivers for KEI Industries, particularly focusing on the rising future of energy and the company’s evolving business strategies.
Morgan Stanley Positive Outlook for KEI Share Price
Morgan Stanley’s Overweight rating indicates strong confidence in the stock’s future performance. The brokerage emphasized the strength of KEI Industries’ Cables & Wires (C&W) franchise, alongside the company’s evolving business model. Moreover, it highlighted the company’s export potential and strategic investments in capital expenditure (capex) to meet both domestic and global demand. These factors contribute to the positive outlook on KEI share price, making it an attractive investment.
Morgan Stanley projects a 23% compound annual growth rate (CAGR) in KEI Industries’ earnings between FY25 and FY28, with KEI share price expected to see substantial growth over the coming years.
KEI Industries Financial Performance Boosts Share Price
In Q3FY25, KEI Industries reported a 9.3% year-on-year (Y-o-Y) increase in net profit, which grew to Rs 164.8 crore from Rs 150.8 crore in Q3FY24. Revenue climbed by 19.8% Y-o-Y to Rs 2,467.2 crore, up from Rs 2,059.3 crore in the same quarter of the previous year. These strong earnings helped fuel the recent uptick in KEI share price.
At the operating level, Ebitda rose by 12.3% Y-o-Y to Rs 240.7 crore, though the Ebitda margin slightly contracted by 60 basis points, from 10.4% in Q3FY24 to 9.8% in Q3FY25.
Geojit’s Outlook on KEI Industries Share Price
In addition to Morgan Stanley, Geojit, a domestic brokerage firm, has also shown optimism regarding KEI Industries share price. On February 20, Geojit upgraded its rating and set a target price of Rs 4,103, based on a 36x FY27E P/E ratio. Geojit analysts highlighted that KEI Industries is poised for continued growth, driven by capacity expansion, rising domestic demand, and expanding global opportunities.
Geojit expects KEI Industries to see 19-20% sales growth in FY25, strengthening the case for further upside potential in KEI share price.
KEI Industries’ Capacity Expansion and Future Growth
KEI Industries is focused on expanding its production capabilities to meet increasing domestic and international demand. This strategic focus on capacity expansion is expected to enhance the company’s ability to capitalize on future opportunities and further boost KEI share price.
The company is also investing in operational efficiencies to ensure that it remains competitive in the market. These initiatives suggest a positive long-term growth trajectory for KEI share price.
How KEI Share Price is Performing in the Market
At 12:01 PM on February 21, KEI Industries share price was trading at Rs 3,915, up 4.91% from the previous session. This strong performance contrasts with the broader market, as the BSE Sensex was trading 0.54% lower at 75,330.66 at the same time.
The rise in KEI share price indicates that investors are optimistic about the company’s future, particularly in light of its robust financial performance and growth outlook.
Conclusion: KEI Industries Share Price Set to Rise
In conclusion, KEI Industries is showing strong growth potential, as reflected in the positive outlook from both Morgan Stanley and Geojit. The company’s robust financials, capacity expansion efforts, and domestic and global growth strategies make KEI share price an attractive option for investors.
With Morgan Stanley’s target price of Rs 4,391 and Geojit’s target price of Rs 4,103, the stock is poised for continued upside. Investors should keep an eye on KEI share price, as the company’s ongoing expansion efforts and market position suggest strong future performance.
