UBS has reiterated its ‘Buy’ rating on KEI Industries, lowering the target price to ₹5,750 from ₹6,050, signaling a potential upside of approximately 42% from the current market price of ₹4,040.00.
The recent margin miss, according to UBS, stems from volatile commodity prices and muted government capital expenditure. However, the brokerage maintains its structural thesis of margin improvement by FY27, driven by a favorable change in the revenue mix. UBS views any near-term negativity as an opportunity for investors.
With new capacities and robust demand, KEI Industries is projected to achieve a 27% earnings CAGR over FY24-FY27, underscoring long-term growth prospects.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
