Shares of KEI Industries Limited were in demand on Thursday, thanks to upbeat second quarter results from the company.
The stock rose to a high of Rs 363.90 on the National Stock Exchange, before settling to close at Rs 349, up 13.2% from previous close. The counter saw a volume of over 1.19 million shares today.
On BSE, the stock ended with a gain of 13.8% at Rs 348.55, after posting a high of Rs 363.95. The KEI Industries counter on BSE clocked a volume of about 1.72 lakh shares today, as compared to average daily volume of just around 18,000 shares.
From a 52-week high of Rs 496 it touched on 30 May 2018, the stock dropped down to around Rs 248 by 23 October 2018
The company announced that it posted a net profit of Rs 41.37 crore in the quarter ended September 2018, up by over 45% over a net profit of Rs 28.50 crore it had recorded in the year-ago quarter.
In the first half of this financial year, operating Profit increased by 22.17% to Rs 186.98 crore, from Rs 153.05 crore in the first half of previous financial year.
Net sales increased by 33.11% in the second quarter to Rs 996.79 crore, from Rs 748.82 crore a year ago. Operating profit was up by about 32.25% at Rs 100.84 in the September 2018 quarter. In the first half of this financial year, net sales increased by 23.18% to Rs 1880.69 crore, from Rs 1526.79 crore in the year-ago quarter.
The company's cable division saw a 23% growth in volume in the second quarter, compared to the corresponding quarter of the previous year. Volume growth in Cable Division during first half is approx. 21% as compared to previous year same period. Total pending orders with the company stood at Rs 3401 crore.
KEI expects a 30% growth in house wire sales and expects exports to grow 20% in financial year 2018-19. It has raised its full year volume guidance from 18-20% to 20-22% now.
KEI Industries Limited, headquartered in New Delhi, was established in 1968 as a partnership firm under the name Krishna Electrical Industries, with prime business activity of manufacturing house wiring rubber cables.
The company has grown over these year and is now engaged in offering holistic wires & cables solutions with a global presence. The products offered by the company include an extensive range of cabling solutions, such as Extra-High Voltage, Medium Voltage and Low Voltage power cables.
The company, which caters to the need of retail as well as institutional segments, has good presence in the Engineering, Procurement and Construction services domain.
At current levels, the stock, looks a good by for medium to long term. One can consider adding more of it at sharp declines.