Rs 529 to Rs 1199: This cable wire company more than doubled investor's wealth in a year

An investment of Rs 1 lakh in this stock last year would have turned to Rs 2.26 lakh today.

KEI Industries Ltd, an S&P BSE 500 company has given multibagger returns in the last one year. During this period, the company’s share price has jumped from Rs 529.1 on 30th March 2021 to Rs 1199 on 28th March 2022. It has a 52-week high and low of Rs 1264 and Rs 475, respectively.

KEI Industries is engaged in the business of electrical wire and cables manufacturing. The company caters to the needs of various sectors such as power, oil & gas, petrochemical, steel and marine. It manufactures and markets extra-high voltage (EHV), medium voltage (MV) and low voltage (LV) power cables. With 15000 channel partners, the company has its presence in 55 countries across the globe.

The company primarily operates in three segments- cables, stainless steel wires and EPC projects. Under the EPC segment, the company’s domestic clientele includes names such as Tata Power DDL, Power Grid Corporation of India. On the other hand, the international clientele comprises of National Water & Electricity Company (NAWEC), Gambia and Electricity Company of Togo (CEET), Togo.

In Q3FY22, on a standalone basis, the company’s net revenue went up by 35.64% YoY to Rs 1564 crore. The PBIDT (ex OI) jumped 26.86% YoY to Rs 156.84 crore, while its corresponding margin contracted by 69 bps YoY to 10.03%. The margin contraction was caused by a steep rise in the cost of materials consumed. Similarly, the net profit surged by 32.96% YoY to Rs 101.25 crore, while its corresponding margin contracted by 13 bps to 6.47% in Q3FY22.

During the quarter, nearly 90% of the revenue came from the cables business, whereas the remaining was accounted for by the stainless-steel wires and EPC projects business.

At 2.14 pm, the shares of KEI Industries Ltd were trading at Rs 1182, a decrease of 1.42% from the previous day’s closing price of Rs 1199 on BSE.