17 Oct , 2024 By : Debdeep Gupta
KEI Industries' share price fell 14 percent in the last two trading sessions after the company reported its operating margins contracted in the July-September quarter.
The fall in margins was on account of the higher cost of raw materials and a spike in finance costs and employee expense benefits.
KEI Industries stock dropped nearly 5 percent in the October 17 trade to quote at Rs 4,170.10 per share on the NSE, down 4.90 percent at 11:10 AM. The scrip touched an intraday low of Rs 4115 apiece on the NSE, down 6.15 percent.
Despite achieving growth in both profit and revenue, the company's EBITDA margin declined by 70 basis points year-on-year, falling to 9.7 percent in the September quarter from 10.4 percent in the same period last year,
The company's net profit increased by 10.3 percent, reaching Rs 154.8 crore for the second quarter of FY25, up from Rs 140.30 crore in the same quarter of the previous year. Additionally, the cable maker's revenue grew by 17.2 percent to Rs 2,279.6 crore, compared to Rs 1,945 crore in the corresponding period last year.
Furthermore, the company reported an order backlog of approximately Rs 3,847 crore by the end of Q2.
KEI Industries share price target
The analysts at the brokerage have revised their targets with Jefferies maintaining a 'Buy' rating on the counter, raising the target price to Rs 5,720 from Rs 5,365 per share.
The domestic brokerage Motilal Oswal too reiterated its 'buy' call on KEI Industries. However, it cut the target to Rs 5,100 from Rs 5,300.
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