KEI Industries Ltd Other Elect. Equip. / Prod.

looks great

Market Cap.: ₹ 1,300.38 Cr.

Current Price: ₹ 167.15

Book Value: ₹ 55.74

Stock P/E: 14.90

Dividend Yield: 0.30%

Face Value: ₹ 2.00

Net Profit: 87.29

15% growth demand by price

Promoter’s stake has decreased

Good business dude

For a growing country

our extensive offerings enable us to serve our Clients with solutions that matCh their exaCt requirements. 

Extra-High Voltage Cables up to 220 KV (400 KV under implementation)

High & Medium Voltage Cables Low-Tension Cables
Control & Instrumentation Cables Speciality Cables

Rubber Cables
Flexible & House Wires
Submersible Cables
PVC/Poly-Wrapped Winding Wires Stainless Steel Wires
Engineering, Procurement and Construction

sectors served 

our diverse range of end marKets and industrial aPPliCations helP to insulate the ComPany from seasonal and CyCliCal demand. 

Power
Oil Refineries Railways Automobiles Cement Steel Fertilisers Textile
Real Estate

What about research and management

branding

What about Finolex cables

Good website

domestic market contribute to 92% sale

Presence in third world countries

wire constitute of highest % in portfolio

minimum growth expected?

right now steep graph .. may have to wait for a little bit before buying

can’t wait for more than 2 months

brand building advertisement cost house wire

check profit margin

any IP technology which only this company has ?

debt to equity debt to cash is on higher side although company is trying to decrease it may be one checklist item is bad??

Within the institutional segment, EHV is the most profitable cable segment at ~14-15% margin. EPC margin is expected to remain at 10-11%, owing to the inherent advantage of in-house souring of cables. Accordingly, we expect an average of 10% EBITDA margin over FY17-19E. This would lead to an EBITDA CAGR of 14% over FY16-19E (vs 12% over FY13-16).

Peers like Havells India and V-Guard Industries have multiple lines of business. When we look at the cables business segment, Havells and Finolex Cables have significantly higher EBIT margin than KEII. EBIT margin of KEII’s cables segment as per segment-wise reporting works out to be 11.6% and 11.8% for FY15 and FY16 respectively, excluding unallocable overheads.

KEI Industries (erstwhile Krishna Electrical Industries) was established in 1968 as a partnership firm with primary

KEI promoter (Anil Gupta & family) holds a majority stake of 49.4% as on March 2016. Over the past six years, the stake has increased from 41.6% FY11 to 44.4% in FY13, 47% in FY14 and 49.4% in FY16.

Good clients

Good shareholder letter

good initiatives may not be beneficial but initiatives are taken

KEI was the lead arm sponsor of the Kings XI Punjab

• Associated with regional exhibitions held by reputable

bodies such as The Confederation of Real Estate

Developers Association of India (CREDAI).

With our products being exported to over 45 countries, KEI

Yet, while growth has been impressive, we believe that this
is the precursor of even stronger performance. With the incumbent government keen to pursue infrastructure reforms at an accelerated pace, the opportunities are exciting and immense. In this dynamic landscape, your Company, India’s leading wires and cables manufacturer, is fully geared up to make the most of the unfolding developments.

Very good shareholder letter I will say

may be just boasting can’t confirm that but has taken time to write and share all the details

But not a high ROE business cost is a lot not too much margin procurement is done on basis of price only so do not have pricing power in this competitive market .. just another player .. no edge

lot of interest because of borrowings

cash is less very less

not lot of salary only MD is taking 5cr rest is negligible

overall the sector is increasing and will increase this company will get a part of it .. can it get more part that is the question need to compare with other providers ..

management is capable

Let us read Finolex annual report now

finolex no debt less interest has +ve cash flow

bigger folio more items and distributed over more range of products

bad site website

Finolex Fan ceiling fan .. I guess I have seen the advertisement

catchy tv comercial

switch mcb

why sales not increasing now

  • Backward integrated in respect of its major materials – CCC Rods, PVC compounds, Optical Fibre and FRP rods which allow the Company a certain technical superiority over its competitor while providing a cost advantage as well.

The Company faces two principal risks in this business – rstly competition from a large unorganized sector which produces products of inferior quality but at cheap prices and secondly a highly volatile commodity market where price movements can be very sharp. The

The state of art communication cables are either copper based or glass based. The copper based cables include LAN cables, coaxial cables, PE insulated switchboard cables and V-SAT cables. These cables are used for last mile connectivity. LAN cables are used in high speed networks, Coaxial cables are used to provide content input to TV receiving sets and in microwave communications and mobile towers, PE insulated switchboard cables are used to connect telephone instruments to an EPABX system and V-SAT cables nd their application in V-SAT towers to connect the dish to the base station. Newer products include

The communication cables segment (including optic bre) recorded sales of Rs.3,764.2 million for the year under review againstRs.2,445 million in the earlier year. There was a signi cant improvement in both volumes and value of products supplied

Finolex seems like family owned business but why uncle to son

Not a great shareholder letter

Seems like KEI is futuristic and management is better

but the sector has limitation on growth may be best is over by looking into finale sales figure we can say this

Also, KEI Industries, another major player in the cables segment is available, and incidentally a “Superbrand” in Dec 2012, is available at cheaper valuations, although it has much higher debt levels.

1) The business is a low margin one and any small change in margins can inflate/deflate profit growth. And influencing margin and profits to a great extend is other income which was 15% of operating profit in 2012. This largely consists of div payout from Finolex Industries done in Sep quarter. March 2013 could give a decline in profit if the March 2012 other income performance of 9.4 Cr cannot be repeated. There is no div payout from Finolex ind in March Quarter.

cannot see long term growth here for sure once all transmission lines are in place …

right now new transmission lines are growing hence the growth right..

huge competitive market no benefit I can see for this particular company

can be vested for small duration till 2020 or so

real state growth power lines overall any kind of growth

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