ABOUT THE COMPANY
KEI INDUSTRIES LIMITED is one of the India’s leading wires and cables manufacturing company. With 30000+ channel partners and operations in 55-60 countries, KEI serves a vast range of sectors including power, railway, renewables, oil & gas, infrastructure and many more. With a strong order book of 3,700 crores, company showing a strong revenue visibility. With a P/E ratio of 50.5x higher than the industry average of 36x signaling elevated valuation but supported by growth expectation. Shareholding pattern has shown a fall in the promoters and FII’s holding percentage during the last 5 years. A fall in the promoters and FII’s holding percentage is a warning signal, but the context matters.
Analysis of the Financial Statements
Revenue Growth Trend
Revenue moved from 4,888 crores in 2020 to 9,763 crores in 2025 with a 5-year CAGR for revenues stands at 14.84%, close to the industry growth rate of 14.7%. It indicates that the annual growth is steady and consistent.
| MARCH 2020 | MARCH 2021 | MARCH 2022 | MARCH 2023 | MARCH 2024 | MARCH 2025 |
| 4,888 CRORES | 4,182 CRORES | 5,727 CRORES | 6,908 CRORES | 8,121 CRORES | 9,736 CRORES |
Profitability & Margin Analysis
Operating Profit Margin has been continuous within the years at 10-11%. While its peers like Finolex Cables, Havells India, V Guard Industries has a OPM of 8-9%. It can be the area of concern for the company. Improving OPM can help the company to deliver better profits in the future.
| MARCH 2020 | MARCH 2021 | MARCH 2022 | MARCH 2023 | MARCH 2024 | MARCH 2025 |
| 10% | 12% | 11% | 10% | 11% | 10% |
Balance Sheet Strength
The total assets of the company have grown from 3,269 crores in March 2020 to 7,235 crores in March 2025 showing a subsequent investment into the manufacturing facilities and working capital to support higher volume sales.
Debt Profile
Borrowings of the company has declined from 367 crores in 2020 to 217 crores in 2025 which will eventually improve the company debt to equity ratio and return on capital employed. Reserves showed a sharp increase from 1,489 crores to 5,767 crores, indicating a large portion of the assets are financed through retained earnings and not through debt. This makes the balance sheet healthier than if it was purely debt-driven.
Cash Flow Health
Operating cash flow of the company is not stable, indicating company is not able to convert its profit into cash. Profits to cash conversion are a problem, a red flag for the investors. Cash Conversion Cycle of the company has gone from 66 days to 115 days showing a large portion of the company cash is blocked for a longer period.
CASH FLOW FROM OPERATING ACTIVITY
| MARCH 2020 | MARCH 2021 | MARCH 2022 | MARCH 2023 | MARCH 2024 | MARCH 2025 |
| -13 | 154 | 229 | 514 | 610 | -32 |
Analysis of the Company Management (Investor Presentation/Disclosures-based view)
Recent conference calls highlighted:
- Greenfield capex at Sanand, Gujarat of around 1700-1800 crores planned for FY25–26, majorly funded internally with a ₹600 crore loan, and expected to begin generating cash flows from H2 FY26 onward.
- Management is working on reducing the Cash Conversion Cycle to maintain liquidity
- In Q4 FY25, management highlighted stable EBITDA at 10.92%.
Disclaimer: The article is for informational purposes only and not investment advice.