KEI Industries (KEI)

FairStock Score: 27/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at KEI Industries in Cables - Electricals. From these figures, I cannot confirm a wide moat, but I do see a business with respectable operating economics: ROCE 21.29%, ROE 14.88%, debt/equity just 0.04, Altman Z-Score 6.88 and Piotroski F-Score 7/9. That points to a conservative balance sheet and decent capital efficiency. Growth is also real: sales grew 23%, profit grew 40%, and the latest quarter had ₹2,955 Cr sales and ₹235 Cr net profit. The five-year revenue CAGR of 14.78% suggests demand has been steady, not a one-year flash. But Mr. Market is asking ₹5700 per share, a market cap of ₹54,492 Cr, 54.64 times earnings and 8.18 times book. The Graham Number is only ₹1131.19, leaving a margin of safety of -349.12%. In plain terms, I am paying a huge premium over asset-based intrinsic value. PEG is 4.76, dividend yield is 0.08%, and free cash flow is negative ₹1,533 Cr. A fast grower can justify a rich multiple only if cash generation follows, but here FCF is not supporting profit. The negative EV/EBITDA of -98.51 also looks anomalous and demands caution. Promoter holding of 35% is neither a strong endorsement nor a red flag by itself, and the 52-week range shows the stock near its high. Conclusion: quality is decent, growth is impressive, debt is low, but the price is demanding and cash flow is weak. I would watch FCF conversion, ROCE durability, growth sustainability, and valuation normalization. At ₹5700, I see more risk than margin of safety.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer