Over the last decade, the company has grown its earnings at around 17-18%.
The Indian market remains strong, with rising investments in power generation, transmission, and distribution. Gupta highlighted that demand for cables is increasing, particularly from solar projects and power distribution companies, as more cities shift to underground networks. Industrial and infrastructure projects are fueling cable demand, while real estate continues to drive growth in wires.
Also Read | Power generation, energy & transmission to drive cable demand, says KEI Industries
Beyond India, KEI Industries is strengthening its global footprint. Exports currently contribute 11-12% of total sales, but the company aims to raise this to 18-20% by 2025-26 (FY26) and 2026-27 (FY27). The capacity expansions planned for FY26 will play a key role in this growth, with further contributions expected from FY27.
KEI Industries will maintain its product mix, with 75% of its offerings being cables and 25% wires and flexibles. As sales increase, the company expects margin expansion, particularly as export volumes grow. Higher exports will contribute to improved profitability.
Also Read | KEI Industries targets robust capex push to fuel growth in 2025
The company has allocated a substantial budget for its expansion plans. KEI plans to spend ₹700-800 crore in 2024-25 (FY25), with a significant portion directed towards the new manufacturing facility in Sanand, near Ahmedabad.
All brownfield expansions in existing factories have been completed, and future capex will primarily focus on maintenance and machinery upgrades. An additional ₹800-1,000 crore is expected to be invested in 2025-26, mainly for the completion of the Sanand project, which is scheduled to be fully operational by March 2026.
KEI Industries reported an over 9.4% increase in its net profit in the October-December 2024 quarter at ₹164.8 crore against ₹150.6 crore. Its revenue from operations increased 19.8% to ₹2,467.2 crore compared to the previous year’s ₹2,059.3 crore.
Morgan Stanley recently initiated coverage on KEI Industries with an “overweight” rating and a price target of ₹4,391, indicating an 18% potential upside. The brokerage sees KEI as a strong cables and wires company with an improving business model, driven by the “future of energy” theme.
The company, which has a current market capitalisation of ₹36,520.68 crore, has seen its shares gain more than 19% over the last year.
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