KEI Industries shares were in focus after global brokerage Morgan Stanley maintained an Overweight rating on the stock, with a target price of ₹4,825, implying an 8% upside from the current market price of ₹4,452.00. The brokerage said the company’s Q2 performance was in line with expectations, driven by healthy growth in its cables and wires (C&W) segment and a notable rise in export revenues.
According to Morgan Stanley, profit after tax (PAT) came in line with estimates, supported by strong C&W revenue growth of 22% year-on-year (against its forecast of 25%) and higher other income. The brokerage estimated that the company’s implied C&W volume growth stood between 12–15%, reflecting steady underlying demand.
The report highlighted that exports surged 117% YoY, significantly outpacing Morgan Stanley’s expectation of 36%, while domestic revenue increased 13% YoY compared with its estimate of 24%. Within the C&W business, wires grew faster at 27% YoY, compared to 19% growth in cables, resulting in a cable-to-wire revenue mix of 64:36.
Morgan Stanley also noted that the C&W EBIT margin expanded by 50 basis points to 10.9%, slightly above its projected 10.8%, underscoring operational efficiency and better product mix.
The brokerage reiterated its positive view on KEI Industries, citing strong momentum in both domestic and export markets, expanding product reach, and consistent margin delivery as key drivers of sustained earnings growth.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities. Brokerage views are based on their respective research reports and publicly available information.