KEI Industries shares tank over 8% post Q1 results
KEI Industries tanked over 8% to Rs 2,225.5 in Tuesday's trade on BSE post-Q1 results. The wires and cables manufacturer reported a net profit for the June quarter of FY24 at Rs 121.38 crore, up from Rs 103.76 crore in the same period of fiscal year 2023. Its revenue rose to Rs 1,790.90 crore for the first quarter ended June 30, 2023, compared to Rs 1,568.94 crore a year ago.
Profit before tax climbed 16.42% to Rs 163 crore in the June 2023 quarter against Rs 140 crore in the June 2022 quarter. EBITDA margin in the June quarter rose to 10.47% against 10.42% YoY. PAT margin in the June quarter increased to 6.81% against 6.63% YoY.
EBIDTA during Q1 came at Rs 186.60 crore against Rs 163.16 crore in the same quarter in the previous year. In FY23, KEI’s revenue increased 21% YoY at Rs 6,912 crore, led by growth of 23% in the winding and house wire segment, 20% YoY in the cable segment, and 10% YoY in the stainless-steel wire segment. At 11.12 am, the stock was trading 7.8% lower at Rs 2,239 on BSE.
However, the stock has surged over 50% YTD, while it has rallied 78% in the last year. As per Trendlyne data, the average target price of the stock is Rs 2,235, a downside of nearly 1% from the current market prices. The consensus recommendation from 14 analysts for the stock is a Buy.
The Relative Strength Index (RSI) is at 52.5. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is at 82, which is above its Center Line, but below the signal line.
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