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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532714 | NSE: KEC

KEI Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:56 pm

Market Cap 34,230 Cr.
Current Price 3,791
High / Low5,040/2,740
Stock P/E54.8
Book Value 383
Dividend Yield0.09 %
ROCE27.2 %
ROE20.2 %
Face Value 2.00
PEG Ratio3.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for KEI Industries Ltd

Competitors of KEI Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindusthan Urban Infrastructure Ltd 373 Cr. 2,5823,550/1,948 2,5850.00 %1.90 %7.09 % 10.0
Dynamic Cables Ltd 2,234 Cr. 922939/33747.8 1380.05 %24.1 %19.3 % 10.0
Cybele Industries Ltd 40.4 Cr. 37.861.0/31.8 46.30.00 %1.56 %0.16 % 10.0
BC Power Controls Ltd 28.6 Cr. 4.096.80/3.61 5.930.00 %4.88 %1.79 % 2.00
Advait Infratech Ltd 1,651 Cr. 1,5292,260/42562.8 1630.10 %39.6 %33.6 % 10.0
Industry Average17,962.22 Cr1,552.7769.54424.740.21%16.21%13.22%8.00

All Competitor Stocks of KEI Industries Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales1,3531,5641,7921,5651,6081,7841,9531,7831,9452,0592,3192,0602,280
Expenses1,2071,4071,6201,4061,4471,6021,7511,6041,7431,8452,0751,8462,059
Operating Profit146157172160161182202178202215245215221
OPM %11%10%10%10%10%10%10%10%10%10%11%10%10%
Other Income328451478914151817
Interest10910988109811171413
Depreciation14141414141414151615161616
Profit before tax125136156140144174184163188202227203208
Tax %26%25%26%26%26%26%25%26%26%26%26%26%26%
Net Profit92101116104107129138121140151169150155
EPS in Rs10.2111.2412.8611.5211.8514.2615.3113.4615.5416.7018.7016.6517.15

Last Updated: October 22, 2024, 4:50 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 22, 2024, 4:50 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,6581,6192,0312,3262,6283,4594,2274,8844,1815,7276,9088,1048,719
Expenses1,4881,4661,8382,0832,3593,1203,7854,3883,7265,1386,2067,2677,825
Operating Profit171153193242269339442496456589702838894
OPM %10%9%10%10%10%10%10%10%11%10%10%10%10%
Other Income21551097162015324964
Interest1091121201271241111361295740354455
Depreciation20212525283234575855576163
Profit before tax43225395126204279327360508642781840
Tax %39%47%35%35%26%29%35%22%25%26%26%26%
Net Profit2612346294145182255270376477581625
EPS in Rs3.751.574.438.0512.0618.4523.0428.5029.9241.7552.9364.3969.20
Dividend Payout %5%13%9%6%5%5%5%5%7%6%6%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-53.85%183.33%82.35%51.61%54.26%25.52%40.11%5.88%39.26%26.86%21.80%
Change in YoY Net Profit Growth (%)0.00%237.18%-100.98%-30.74%2.64%-28.74%14.59%-34.23%33.38%-12.40%-5.06%

KEI Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:14%
3 Years:25%
TTM:17%
Compounded Profit Growth
10 Years:48%
5 Years:26%
3 Years:29%
TTM:18%
Stock Price CAGR
10 Years:56%
5 Years:49%
3 Years:53%
1 Year:35%
Return on Equity
10 Years:20%
5 Years:20%
3 Years:20%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: October 22, 2024, 4:50 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital14151515161616181818181818
Reserves2422542883514455897631,4891,7562,1172,5713,1303,440
Borrowings474511452498813842599367333355162166351
Other Liabilities4484645855986227701,3871,3959021,0361,0191,3421,134
Total Liabilities1,1771,2441,3421,4631,8962,2172,7653,2693,0083,5273,7704,6564,943
Fixed Assets309314298328405407489554537531567770946
CWIP30429323321171715121138
Investments3333332112122
Other Assets8639261,0361,1031,4851,7842,2432,7032,4632,9783,1873,7643,857
Total Assets1,1771,2441,3421,4631,8962,2172,7653,2693,0083,5273,7704,6564,943

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +14983198185-29189624-13154229514611
Cash from Investing Activity +-15-22-17-98-63-76-2751175-58-137-353
Cash from Financing Activity +-123-73-181-87229-68-38699-129-31-256-72
Net Cash Flow11-110113745-3797101139121186

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-303.00-358.00-259.00-256.00-544.00-503.00-157.00129.00123.00234.00540.00672.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days9397868911410895102118897368
Inventory Days108122109961149794103102967984
Days Payable1191171199811011013914099685463
Cash Conversion Cycle8210176871199549661211179989
Working Capital Days719270721039252811181028777
ROCE %21%18%22%27%23%23%29%28%21%24%26%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters38.02%38.02%38.02%37.99%37.32%37.21%37.10%37.08%37.08%37.08%37.08%37.06%
FIIs21.78%25.22%26.46%26.96%26.83%27.37%27.67%29.57%30.95%31.00%30.75%31.11%
DIIs24.03%21.58%19.49%18.09%19.09%19.55%19.55%17.64%16.05%16.30%16.56%16.01%
Public16.16%15.17%16.03%16.97%16.74%15.88%15.68%15.70%15.91%15.60%15.60%15.82%
No. of Shareholders89,29284,28693,15298,12897,66198,0211,08,7491,25,7131,30,6921,29,0551,55,5141,65,905

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan1,007,8561.28433.11664,8842024-11-2151.58%
Franklin India Focused Equity Fund890,0002.93382.46664,8842024-11-2133.86%
Canara Robeco Small Cap Fund737,4822.52316.92664,8842024-11-2110.92%
HSBC Small Cap Fund - Regular Plan664,8841.65285.72664,8842024-11-210%
HSBC Midcap Fund494,4001.73212.46664,8842024-11-21-25.64%
DSP Mid Cap Fund436,7670.93187.69664,8842024-11-21-34.31%
Canara Robeco Flexi Cap Fund327,6871.03140.82664,8842024-11-21-50.72%
Axis Growth Opportunities Fund304,9470.9131.04664,8842024-11-21-54.14%
Edelweiss Small Cap Fund267,5612.68114.98664,8842024-11-21-59.76%
Invesco India Contra Fund264,6490.62113.73664,8842024-11-21-60.2%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)13.496.8512.9221.5022.00
Diluted EPS (Rs.)13.496.8512.9221.5022.00
Cash EPS (Rs.)20.7013.1319.0627.4327.72
Book Value[Excl.RevalReserv]/Share (Rs.)159.30146.69140.80130.68108.81
Book Value[Incl.RevalReserv]/Share (Rs.)159.30146.69140.80130.68108.81
Revenue From Operations / Share (Rs.)774.57672.18534.51510.08465.40
PBDIT / Share (Rs.)49.2833.4935.6645.5548.44
PBIT / Share (Rs.)42.0727.2129.5239.6242.72
PBT / Share (Rs.)16.596.2615.5429.4030.74
Net Profit / Share (Rs.)13.496.8512.9221.5022.00
NP After MI And SOA / Share (Rs.)13.496.8512.9221.5022.00
PBDIT Margin (%)6.364.986.678.9310.40
PBIT Margin (%)5.434.045.527.769.17
PBT Margin (%)2.140.932.905.766.60
Net Profit Margin (%)1.741.012.414.214.72
NP After MI And SOA Margin (%)1.741.012.414.214.72
Return on Networth / Equity (%)8.464.669.1716.4520.21
Return on Capital Employeed (%)23.9215.6817.9027.0834.82
Return On Assets (%)1.820.942.033.934.39
Long Term Debt / Equity (X)0.060.130.100.060.05
Total Debt / Equity (X)0.930.840.790.540.73
Asset Turnover Ratio (%)1.060.910.860.900.87
Current Ratio (X)1.111.111.131.161.13
Quick Ratio (X)1.031.031.041.071.05
Inventory Turnover Ratio (X)7.166.756.786.657.72
Dividend Payout Ratio (NP) (%)22.2358.4130.950.0027.69
Dividend Payout Ratio (CP) (%)14.4930.4620.980.0021.97
Earning Retention Ratio (%)77.7741.5969.050.0072.31
Cash Earning Retention Ratio (%)85.5169.5479.020.0078.03
Interest Coverage Ratio (X)1.931.602.904.464.04
Interest Coverage Ratio (Post Tax) (X)1.531.332.193.102.84
Enterprise Value (Cr.)21380.4914579.1912348.7212144.356667.34
EV / Net Operating Revenue (X)1.070.840.890.920.55
EV / EBITDA (X)16.8816.9313.4710.375.35
MarketCap / Net Operating Revenue (X)0.890.670.700.800.39
Retention Ratios (%)77.7641.5869.040.0072.30
Price / BV (X)4.363.112.693.141.70
Price / Net Operating Revenue (X)0.890.670.700.800.39
EarningsYield0.010.010.030.050.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of KEI Industries Ltd as of November 22, 2024 is: 4,243.47

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, KEI Industries Ltd is Undervalued by 11.94% compared to the current share price 3,791.00

Intrinsic Value of KEI Industries Ltd as of November 22, 2024 is: 5,018.22

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, KEI Industries Ltd is Undervalued by 32.37% compared to the current share price 3,791.00

Last 5 Year EPS CAGR: 18.26%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.08%, which is a positive sign.
  2. The company has higher reserves (1,341.15 cr) compared to borrowings (455.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.85 cr) and profit (329.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 84.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 91.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in KEI Industries Ltd:
    1. Net Profit Margin: 1.74%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.92% (Industry Average ROCE: 16.21%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.46% (Industry Average ROE: 13.22%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.53
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.03
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 54.8 (Industry average Stock P/E: 69.54)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.93
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

KEI Industries Ltd. is a Public Limited Listed company incorporated on 31/12/1992 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1992PLC051527 and registration number is 051527. Currently Company is involved in the business activities of Manufacture of wire of steel by cold drawing or stretching. Company’s Total Operating Revenue is Rs. 5726.55 Cr. and Equity Capital is Rs. 18.02 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - Power/OthersD-90, Okhla Industrial Area, Phase - I, New Delhi Delhi 110020cs@kei-ind.com
http://www.kei-ind.com
Management
NamePosition Held
Mr. Anil GuptaChairman & Managing Director
Mr. Rajeev GuptaExecutive Director (Finance) & CFO
Mr. Akshit Diviaj GuptaExecutive Director
Mrs. Archana GuptaNon Executive Director
Mr. K G SomaniInd. Non-Executive Director
Mr. Pawan BholusariaInd. Non-Executive Director
Mr. Vijay BhushanInd. Non-Executive Director
Mr. Vikram BhartiaInd. Non-Executive Director
Ms. Shalini GuptaInd. Non-Executive Director
Mr. Sadhu Ram BansalInd. Non-Executive Director
Dr. Rajesh Kumar YaduvanshiInd. Non-Executive Director
Mr. Vinay MittalInd. Non-Executive Director

FAQ

What is the latest intrinsic value of KEI Industries Ltd?

The latest intrinsic value of KEI Industries Ltd as on 21 November 2024 is ₹4243.47, which is 11.94% higher than the current market price of ₹3,791.00.

What is the Market Cap of KEI Industries Ltd?

The Market Cap of KEI Industries Ltd is 34,230 Cr..

What is the current Stock Price of KEI Industries Ltd as on 21 November 2024?

The current stock price of KEI Industries Ltd as on 21 November 2024 is ₹3,791.

What is the High / Low of KEI Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of KEI Industries Ltd stocks is 5,040/2,740.

What is the Stock P/E of KEI Industries Ltd?

The Stock P/E of KEI Industries Ltd is 54.8.

What is the Book Value of KEI Industries Ltd?

The Book Value of KEI Industries Ltd is 383.

What is the Dividend Yield of KEI Industries Ltd?

The Dividend Yield of KEI Industries Ltd is 0.09 %.

What is the ROCE of KEI Industries Ltd?

The ROCE of KEI Industries Ltd is 27.2 %.

What is the ROE of KEI Industries Ltd?

The ROE of KEI Industries Ltd is 20.2 %.

What is the Face Value of KEI Industries Ltd?

The Face Value of KEI Industries Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in KEI Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE