HomeMarket NewsOver 1600% returns! This stock has turned Rs 1 lakh into Rs 17 lakh in just 5 years

Over 1600% returns! This stock has turned Rs 1 lakh into Rs 17 lakh in just 5 years

The stock of the cable manufacturing company surged over 94 percent in the last 1 year and over 47 percent since the beginning of 2019.

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By Pranati Deva  October 9, 2019, 6:29:57 AM IST (Updated)

Over 1600% returns! This stock has turned Rs 1 lakh into Rs 17 lakh in just 5 years
KEI Industries has proved to be a long-term safe bet for investors. The stock has risen 1,674 percent — from around Rs 30 in 2014 to Rs 532 currently. To put in perspective, Rs 1 lakh invested in the stock in 2014 would have turned into around Rs 17.7 lakh today.


The stock of the cable manufacturing company surged over 94 percent in the last 1 year and over 47 percent since the beginning of 2019. The scrip hit its 52-week high of Rs 558.90 on September 30, 2019, and a 52-week low of Rs 248.40 on October 23, 2018.

Recently, CARE Ratings reaffirmed the rating assigned to Long Term Bank Facilities availed by the company as CARE A with a stable outlook. CARE Ratings also reaffirmed the rating assigned to Short Term Bank Facilities and Commercial Paper as CARE A1. Instruments/Facilities with this rating are considered to have a very strong degree of safety regarding timely payment of financial obligations, the company said in a BSE filing.

In Q1, the company's net profit rose 42 percent to Rs 45.81 crore as against Rs 32.17 crore in the year-ago period. The net sales of the company registered a growth of over 22 percent in the June-quarter to Rs 1,081.36 crore. The company also said that it is expected to grow 17-18 percent in FY20.

This is the twelfth quarter of straight double-digit revenue growth for the company. Strong growth was led by EPC sales, up 23 percent and extra-high voltage (EHV) sales, up 100 percent.

Analysts at Angel Broking are bullish on the stock with a target price of Rs 556

"KEI Industries current order book (OB) stands at Rs 4,414 crore (segmental break-up: out which EPC is around Rs 2,210 crore and balance from cables, substation & EHV). Its OB grew strongly in the last 3 years due to strong order inflows from State Electricity Boards, Power Grid, etc," the brokerage said in a report.

It added that KEI’s export (FY19 – 16 percent of revenue) is expected to reach a level of 20 percent in the next two years with higher-order execution from current OB and participation in various international tenders. Angel Broking expects KEI to report net revenue CAGR of 15 percent to Rs 5,632 crore and net profit CAGR of 22 percent to Rs 269 crore over FY19-21E.



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