11th January 2018
Initiating Coverage I Sector: Capital Goods
KEI Industries Ltd
BSE SENSEX
34,503
S&P CNX
10,651
CMP: INR 373
TP: INR 537 (+44%)
Buy
We recommend BUY on KEI Industries Ltd. for target price of INR537
(18x FY20E EPS).
KEI Industries Ltd. (KEI) is ranked amongst the top 3 power cable companies
in India and is also engaged in the EPC business. It manufactures high and low
tension cables (HT, LT, EHV), control & instrumentation cables, house wires
(HW), power cables, stainless steel wires (SSW) and electrical cables. The
institutional segment is the largest revenue generator for the company (56%
in FY17), followed by retail segment (30%) and exports segment (14%).
KEI has been focusing on expanding its cable capacity to address growth
prospects in various segments. It has been concentrating on improving its
B2C (Retail Segment) share and growing institutional segment. KEI is looking
at entering newer markets in South and East India, apart from existing North
and West. The institutional segment along with EPC services has immense
growth potential given the government emphasis on power and infra.
Expanding retail segment to be a key growth driver:
We expect retail
segment revenue CAGR of 25% over FY17-20E to INR 16bn. Contribution
from the segment is expected to go up from 30% in FY17 to ~36% by FY20
(management guidance is 40%). We expect HW revenue CAGR of 20% over
FY17-20E to INR 7.4bn. KEI plans to increase its dealer network by 10-15%
every year (from 1,274 dealers in 2QFY18 to 1,500 by end of FY18).
EHV cables and EPC to drive institutional segment growth:
KEI aims to
strengthen its high-margin EHV segment (15% margins), with the installation
of 400kV production line in FY17 (Segments revenue generating capacity
increased to INR4bn). We expect EHV cables revenue to grow at a CAGR of
53% over FY17-20E to INR ~3.6bn. Its EPC order book has grown significantly
from INR ~4bn in FY14 to INR ~20bn in FY17. We expect EPC revenue CAGR of
28% over FY17-20E, due to management's focus on order execution.
MAXIMUM BUY
PRICE: INR 415
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Turnover, INR m
Free float (%)
Financials Snapshot (INR b)
Y/E Mar
Net Sales
EBITDA
PAT
EPS (INR)
Gr. (%)
BV/Sh (INR)
P/E (x)
P/BV (x)
EV/E (x)
Div. PO (%)
RoE (%)
RoCE (%)
2018E
32.2
3.4
1.3
17.0
34.1
77.0
21.9
4.8
10.5
5.0
24.7
18.7
2019E
38.0
4.0
1.7
22.3
30.9
98.2
16.8
3.8
8.9
4.9
25.4
19.7
2020E
44.6
4.9
2.3
29.8
33.9
126.5
12.5
2.9
7.3
5.0
26.5
20.5
KEII IN
77.8
423 / 125
-12 / 51 / 133
29.2
0.46
164
51
Robust revenue/EBITDA/PAT growth with improving return ratios:
Over
FY12-17, KEI's Revenue/ EBITDA/ PAT grew at a CAGR of 9.2%/ 12.8%/ 32.3%
Shareholding pattern (%)
to INR 26.7bn/ 2.7bn/ 0.9bn, respectively, with EBITDA margin expansion of
As On
Sept-17
Jun-17 Mar-17
~155bps to 10.3%. We expect margins to improve further by ~75bps to 11%
Promoter
46.3
46.6
46.6
over FY17-20E on the back of increasing contribution from Retail & EHV
MFs
13.5
18.4
18.6
segment and better execution in the EPC business. Going ahead, we expect
FPIs
5.5
4.0
4.3
Revenue/ EBITDA/ PAT CAGR of 18.7%/ 21.6%/ 33% to INR 44.6bn/ 4.9bn/
Others
34.7
31.0
30.5
2.3bn, respectively, over FY17-20E. RoE/ ROCE are expected to improve to
Investors are advised to refer through
26.5%/ 20.5% by FY20 from 23.5%/ 18.5% in FY17.
disclosures made at the end of the Research
Valuation:
KEI is likely to be a major beneficiary of key government initiatives
Report.
in power, infrastructure and real estate sector. It has high return ratios, free
cash flows and low debt to equity (0.7x FY20). Currently, KEI trades at 12.5x
Siddhartha Khemka
FY20 EPS. Given the high growth expectation along with healthy financials,
siddhartha.khemka@motilaloswal.com
we believe that the stock deserves higher valuations. We value KEI at 18x
FY20EPS to arrive at a fair value of INR 537/share (44% upside) and initiate
Pooja Doshi
coverage with a BUY recommendation.
pooja.doshi@motilaloswal.com

KEI Industries Ltd.
About the Company
KEI 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 firm was converted
into public limited with the corporate name KEI Industries Limited in December 1992. In 1996, it
acquired 'Matchless', a company under same management, which was engaged in manufacturing
of SSW. In 2010, it set foot into the manufacturing of EHV cables up to 220kV in collaboration with
BRUGG Kables, AG a century old Swiss company (currently expanded to 400kV).
KEI has a diversified business model with a significant presence in domestic and international
markets. It services retail and institutional segments and caters to both private and public sector
clients. Currently, it is engaged in manufacturing and marketing of Power Cables and addresses
the cabling requirements of a wide spectrum of sectors such as Power, Oil Refineries, Railways,
Automobiles, Cement, Steel, Real Estate etc. It has built its manufacturing facilities at Bhiwadi
and Chopanki (both in Rajasthan) and Silvassa (Dadra and Nagar Haveli). It is well-poised to garner
opportunities from the power utilities, core infrastructure and construction projects across the
country. Its prudent foray into the EHV cable and EPC Services for Power Sector Projects has
further expanded the opportunity horizon.
Exhibit 1: KEI's key business divisions
Business Model
Product Division
Low Tension Cables (LT)
High Tension Cables (HT)
Extra High Voltage Cables (EHV)
Flexible and House Wires (HW)
Stainless Steel Wires (SSW)
Control and Instrumentation Cables
Specialty Cables
Rubber Cables
Submersible Cables
PVC/Poly Wrapped Winding Wires (WW)
Source: Company, MOSL
EPC Division
Execution of power transmission projects of 66kV
to 400kV sub-stations on a turnkey basis
EPC of EHV and HV cable systems
Electrical balance of plant systems for power
plants
Electrical balance of plant systems for industrial
electrical projects
Exhibit 2: Plant-wise capacities (FY17)
Product
LT Cables
HT Cables
EHV Cables
Winding, Felxible and House Wires
Stainless Steel Wires*
Capacity Utilization (1QFY18)
All Values in kms, *in Metric Tonne
3,000
N.A.
40,000
4,800
93%
4,500
900
397,000
1,200
70%
N.A.
N.A.
240,000
N.A.
90%
Source: Company, MOSL
Bhiwadi
Chopanki
Silvassa
Total
84,000
7,500
900
677,000
6,000
11 January 2018
November 2017
2

KEI Industries Ltd.
Exhibit 3: Journey since Inception
1960 - 2000
Established as a partnership firm
& started manufacturing of
switch board cables for DOT
Started manufacturing of Control,
Instrumentation & Thermocouple
Cables
Established as Public Co. &
started manufacturing of PVC/
XLPE power cab. up to 3.3 kV
Ventured into stainless steel
drawings with pilot plant & Co
got listed
Installed SSW plant & PVC/XLPE -
LT power cables plant at Bhiwadi
2000 - 2010
Started manufacturing of rubber
cables upto 11 kV & established
JFTC Plant at Silvassa
Added
new
project
for
manufacturing 33 kV HT cables
Started New Project of (HT & LT
Cable) at Chopanki & expansion at
Bhiwadi & Silvassa
Commissioned 100% EOU at
Chopanki for LT power cables
Completed the upgradation of HT
cable capacity at Bhiwadi &
Chopanki up to 66 kV
Technical Know - how agreement
with BRUGG KABEL A.G., Swiss for
EHV cables (66kV to 220kV ) &
commercial production
Source: Company, MOSL
2010 - 2017
New office at Singapore, Nigeria &
Kazakhstan
Strengthened Retail Network
EPC contract for Sub Station of
220kV
EHV upto 400 kV Commissioned
Exhibit 4: Product-wise revenue mix in FY17
Exhibit 5: Segment-wise revenue mix in FY17
Source: Company, MOSL
Exhibit 6: Auditors
Name
M/s. Pawan Shubham & Co
Mr. Baldev Singh Kashtwal
Type
Statutory
Secretarial Auditor
Exhibit 7: 1-year stock performance rebased to 100
M/s. S Chander & Associates Cost Auditor
Source: Company, MOSL
11 January 2018
November 2017
3

KEI Industries Ltd.
Investment Argument
Focus on improving retail segment contribution to drive growth
KEI's retail segment (~30% of overall revenue of INR 26.7bn in FY17) comprises of house wires
(HW) and a portion of Low Tension cables (LT) sold through dealer network. Its total retail revenue
has grown at a CAGR of 27% to INR 8.1bn over FY15-17.
We expect retail segment revenue CAGR of 25% to INR 16bn over FY17-20E and contribution to
increase to 36% by FY20 (managements guidance is ~40% by FY20). Management has been focusing
on 1) growing its dealer network by 10-15% every year (from 1,274 in 1HFY18 to 1,500 by FY18), 2)
embarking on brand building initiatives (advertising, sponsoring IPL team - Kings XI Punjab), 3)
performance linked schemes and 4) dealer electrician meets etc.
Key government initiatives such as 'Housing for All by 2022', Higher allocations for affordable
housing under 'Pradhan Mantri Awas Yojana') etc., would boost growth in HW and LT cables.
Better margins (11% in retail vs. 9% in institutional) and low working capital requirements will
improve the ROCE's of the business and make retail segment an important pillar of KEI's growth
model.
Exhibit 8: Focus on growing dealer network
Exhibit 9: Increasing retail segment contribution
Source: Company, MOSL
Increasing focus on EHV and EPC to drive institutional segment growth
KEI's institutional business (~56% of the overall revenue of INR 26.7bn in FY17) comprises of 2
broad divisions i.e. 1) Wires and Cables (except HW) and 2) Engineering, Procurement and
Construction (EPC). From a CAGR of 4% over FY15-17, we expect institutional segment revenue
CAGR of 16% over FY17-20E to INR 22.9bn (driven by strong growth in EHV and EPC).
11 January 2018
November 2017
4

KEI Industries Ltd.
Expanding capacity to address growth in EHV cables:
As per the industry data, the estimated market
for EHV cable in India is worth INR ~20bn of which 25% is met through imports. In FY10, KEI forayed
into manufacturing of EHV cables (15% margins) up to 220kV, in collaboration with Brugg Kabel, AG
in order to meet demand from mega power plants, transmission companies, IT Parks, metro rail
projects etc. In FY17, it further installed a new 400kV EHV cables production line at its Chopanki
unit (total installed capacity of 900kms) with overall revenue generating capacity of INR 4bn
(certification approval to come by 4QFY18).
KEI is expected to benefit from backward integration through in-house PVC compound
manufacturing and higher demand from transmission companies. Also, with more than 92% of the
power consumption states adopting Ujwal Discom Assurance Yojana (UDAY), state Distribution
companies are expected to improve their T&D infrastructure through renewed capex, which would
benefit KEI. We expect its EHV revenue to report a CAGR of 53% to INR 3.6bn over FY17-20E from
INR 1bn in FY17 (impacted due to shut-down for 4-5 months for expansion).
Building competencies in EPC division (Forward Integration):
Through EPC (12% margins), KEI offers
extensive turnkey solutions including design, engineering, procurement, project management
services etc. Its EPC order book has grown significantly from INR ~4bn in FY14 to INR ~16.2bn in
2QFY18 (execution timeline of ~24 months) and revenue has grown at a CAGR of 36% over FY15-17.
We expect its EPC revenue (including cables) to grow at a CAGR 28% over FY17-20E to INR 13.7bn
due to 1) strong order book visibility, 2) focus on execution rather than mounting its order book
and 3) orders from Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power
Development Scheme (IPDS) (aims towards goals like '24x7 Power for all' and strengthening of
T&D networks). On the other hand, from being an EBIT negative division (INR -31mn in FY12), EPC
recorded an EBIT gain of INR 665mn in FY17 with margins of 10%. We expect margins to be in the
range of ~11-12% in the long term.
Exhibit 10: Total order book CAGR of 32% over FY14-17
Exhibit 11: EPC order book break-up (2QFY18)
Source: Company, MOSL
Exports to report decent growth due to strong geographical presence
KEI has presence in over 45 countries across the globe with strong focus on oil and gas and utilities
segment. It exports wide range of cables (LT, HT, EHV, Medium Voltage (11kV to 33kV) and Low
Voltage (< 11kV)) to its overseas customers. It opened new offices in Singapore, Nigeria, Korea and
Australia apart from the existing office in Dubai/Abu Dhabi. In FY17, KEI bagged approvals for large
projects in Middle East & Africa. With key geographical expansions, export revenues jumped to
INR 3.7bn in FY17 from INR 0.9bn in FY13. We expect it to grow at a CAGR of 15% over FY17-20E to
INR 5.7bn.
11 January 2018
November 2017
5

KEI Industries Ltd.
Financial Analysis
Robust revenue/EBITDA/PAT growth to continue
In the past 5 years, KEI's revenue/ EBITDA/ PAT CAGR stood at 9.2%/ 12.8%/ 32.3% to INR 26.7bn/
2.7bn/ 0.9bn. We expect revenues/ EBITDA/ PAT to grow at a CAGR of 18.7%/ 21.6%/ 33% to INR
44.6bn/ 4.9bn/ 2.3bn over FY17-20E. Revenue CAGR is likely to be driven by LT (12% CAGR over 17-
20E), HT (12%), EHV cables (53%), HW (20%), SS (10%) and EPC ex-cables (31%). Additionally, PAT
is expected to grow at a higher rate due to increase in EBITDA margins and lower interest burden.
Exhibit 12: Segment wise revenue mix (INR mn)
Segment
Institutional
LT Cables
HT Cables
EHV Cables
SS Wire
EPC (without cables)
Retail
LT Cables
House Wires
Exports
Total Net Revenue
2015
11,627
8,125
3,281
595
1,048
2,184
5,078
1,799
3,279
1,422
20,310
2016
10,909
6,190
4,350
1,338
940
3,230
7,208
3,438
3,770
1,909
23,256
2017
10,577
8,474
3,800
1,010
1,040
4,240
8,127
3,847
4,280
3,747
26,691
2018E
10,987
8,279
4,256
1,616
1,144
6,417
10,442
5,519
4,922
4,309
32,155
2019E
11,994
8,500
4,767
2,424
1,259
8,226
12,861
6,955
5,907
4,955
38,037
2020E
13,316
8,655
5,339
3,636
1,385
9,597
16,038
8,655
7,384
5,699
44,649
Exhibit 13: Product wise Revenue Mix (INR mn)
Segment
LT
HT
EHV
HW/WW
SS Wire
EPC (without cable)
Total
2015
9,923
3,281
595
3,279
1,048
2,184
20,310
2016
9,628
4,350
1,338
3,770
940
3,230
23,256
2017
12,320
3,800
1,010
4,280
1,040
4,240
26,691
2018E
13,799
4,256
1,616
4,922
1,144
6,417
32,155
2019E
15,455
4,767
2,424
5,907
1,259
8,226
38,037
2020E
17,309
5,339
3,636
7,384
1,385
9,597
44,649
Source: Company, MOSL
Low net debt to equity in-spite of increasing capex
KEI incurred a significant capex of INR 1.6bn over the last 2 years in order to add an incremental
capacity in EHV cables at its Chopanki unit. Currently, it is undergoing a greenfield capex of INR
500mn to add capacity in LT cables which is likely to be operational from April 2018. It further
plans to incur a greenfield capex of INR 2.5bn over FY19 & FY20 for all segments except EHV.
Inspite of significant amount of capex, KEI has been generating free cash flow (FCF) due to
increase in revenue and earnings. Hence, we expect net debt to equity to improve from 1.4x in
FY17 to 0.7x by FY20E.
11 January 2018
November 2017
6

KEI Industries Ltd.
Expanding margins due to improving business mix
KEI's EBITDA margin has expanded by ~155bps to 10.3% in FY17 from 8.7% in FY12. We expect it
to improve by another ~75bps to 11% in FY20E due to, 1) Increase in contribution from retail
segment, 2) Improved contribution from EHV cables 3) Better order execution in the EPC business
and 4) Pick-up in government and private capex cycle (likely to boost margins from 9% to 11% in
the institutional segment).
Exhibit 14: Rising EBITDA margins
Exhibit 15: Product-wise EBITDA margins
Source: Company, MOSL
Working capital cycle to improve along with positive FCF in future
KEI has been generating positive FCF over the years in spite of significant amount of capex.
However, in FY17 there was a significant amount of year end sale and high retention money due
to growth in EPC business. This led to high trade receivables and thereby affected FCF. However,
management has now been focusing on execution of existing orders and getting the retention
money before building its order book. We thus expect receivable days and working capital to
improve going ahead along with a positive trend of free cash flow.
Exhibit 16: Net working capital cycle
Exhibit 17: Free cash flow to continue
Source: Company, MOSL
11 January 2018
November 2017
7

KEI Industries Ltd.
Valuation
Key government initiatives in infrastructure and real estate sector such as Housing for All by
2022, IPDS, DDUGJY, UDAY etc. would benefit KEI in a big way. HW, EHV and EPC segment is likely
to drive revenue growth and expand EBITDA margins going ahead. We expect Revenues/
EBITDA/ PAT CAGR of 18.7%/ 21.6%/ 33% to INR 44.6bn/ 4.9bn/ 2.3bn over FY17-20E. KEI has
maintained high ROE and ROCE profile historically and we expect ROE/ROCE to improve to
26.5%/ 20.5% by FY20. Even with continuous capex, KEI will be able to maintain net debt to
equity below 1.0x. Currently, KEI trades at 12.5x FY20 EPS. Given the high growth expectation
along with healthy financials, we believe that the stock deserves higher valuations. We value
KEI at 18x FY20EPS to arrive at a fair value of INR 537/share (44% upside) and initiate coverage
with a BUY recommendation.
Exhibit 18: Peer comparison
Company
Market Cap**
(INR bn)
343
111
100
29
Rev Growth EBITDA Growth
(FY18-20E)
(FY18-20E)
18%
21%
15%
18%
25%
20%
20%
21%
PAT Growth
(FY18-20E)
24%
14%
24%
32%
ROE
(FY20E)
23%
19%
26%
27%
P/E
(FY20E)
31
18
37
13
Havells India Ltd.*
Finolex Cables^
VGuard Industries^
KEI Industries
*MOSL Estimates, ^Bloomberg Estimates,**as on 11th Jan, 2018
Source: Company, MOSL
Exhibit 19: KEI Industries 1-year forward P/E (x)
Source: Company, MOSL
11 January 2018
November 2017
8

KEI Industries Ltd.
Story in Charts
Exhibit 20: Revenue CAGR of 18.7% over FY17-20E
Exhibit 21: EBITDA margin improvement to continue
Source: Company, MOSL
Exhibit 22: Expect 33% PAT CAGR over FY17-20E
Exhibit 23: Improving ROE and ROCE (%)
Source: Company, MOSL
Exhibit 24: Improving net debt to equity
Exhibit 25: Segment wise revenue CAGR (%)
Source: Company, MOSL
11 January 2018
November 2017
9

KEI Industries Ltd.
Key Risks
• Inability to pass on any increase in raw material prices (copper or aluminum) to
the customers could adversely impact margins and profitability
• Inability to scale up capacity could decelerate growth in cables segment
• Any slowdown in government infrastructure spending could impact the cable
volumes (EPC and EHV) especially when private investments doesn't revive
• Inability to win new EPC contracts or execute existing contracts could be a major
risk factor
• Underground cabling has RoW issue which can delay the project execution and
thereby impact earnings
Management Overview
Mr. Anil Gupta, Chairman & Managing Director
Mr. Gupta is a recognized expert in the Indian cable and wire Industry. He became a
part of the KEI group in 1979 as a partner in the erstwhile Krishna Electrical Industries.
He soon rose to become its Chairman cum Managing Director. With almost 40 years
of experience at the helm of KEI Group of Companies, Mr. Gupta has initiated various
marketing, production, quality control and product development policies.
Mr. Akshit Diviaj Gupta, Whole Time Director
Mr. Akshit is a young professional with a strong entrepreneurial background. He
has a BBA degree in Management and Honorary Graduate Fellowship.
Mr. Rajeev Gupta, Executive Director (Finance) & CFO
Mr. Rajeev Gupta is B.Com (Hons.) and Chartered Accountant. He has about 20 year
experience in Finance Department. He is heading the Finance & Accounts
Department.
11 January 2018
November 2017
10

KEI Industries Ltd.
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Fin. Charges
Other Income
PBT
Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY12
17,223
15,722
91.3
1,501
8.7
195
1,305
962
16
360
117
32.4
243
243
NA
1.4
FY13
16,584
-3.7
14,878
89.7
1,705
10.3
204
1,501
1,094
24
431
167
38.9
263
263
8.3
1.6
FY14
16,189
-2.4
14,659
90.5
1,530
9.5
210
1,321
1,115
13
218
102
46.8
116
116
-56.0
0.7
FY15
20,310
25.5
18,381
90.5
1,929
9.5
246
1,683
1,204
24
529
186
35.2
342
326
180.7
1.6
FY16
23,256
14.5
20,833
89.6
2,423
10.4
253
2,170
1,270
53
953
331
34.8
622
622
91.0
2.7
FY17
26,691
14.8
23,948
89.7
2,743
10.3
280
2,463
1,229
104
1,338
351
26.3
986
986
58.6
3.7
FY18E
32,155
20.5
28,800
89.6
3,355
10.4
324
3,031
1,269
50
1,812
489
27.0
1,323
1,323
34.1
4.1
(INR Million)
FY19E
FY20E
38,037 44,649
18.3
17.4
33,998 39,722
89.4
89.0
4,039
4,928
10.6
11.0
341
387
3,698
4,541
1,274
1,278
50
50
2,474
3,313
742
994
30.0
30.0
1,732
2,319
1,732
2,319
30.9
33.9
4.6
5.2
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Debt
Deferred Tax (Net)
Total Capital Employed
Gross Fixed Assets
Less: Accum. Depri.
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash and Bank Bal
Loans and Adv & OCA
Curr. Liability & Prov.
Account Payables
Current Liabilities
Other LT Liab. & Prov.
Net Current Assets
Appl. of Funds
FY12
134
2,137
2,271
4,872
23
7,166
4,022
841
3,181
2
31
8,735
2,922
4,826
44
943
4,783
4,093
629
62
3,952
7,166
FY13
140
2,415
2,556
4,732
106
7,394
4,124
1,036
3,089
26
31
8,626
3,582
4,212
156
676
4,378
3,948
363
67
4,248
7,394
FY14
147
2,539
2,731
5,104
160
7,995
4,357
1,216
3,141
2
31
9,261
4,031
4,286
46
898
4,440
3,872
498
70
4,821
7,995
FY15
154
2,884
3,039
4,520
235
7,794
4,451
1,470
2,981
44
31
10,361
4,403
4,798
47
1,113
5,623
4,810
692
122
4,738
7,794
FY16
154
3,512
3,666
4,972
362
9,001
4,995
1,716
3,279
293
31
11,266
4,225
5,674
59
1,309
5,869
4,323
1,395
151
5,397
9,001
FY17
156
4,579
4,735
7,118
427
12,280
6,044
1,990
4,054
32
31
13,993
4,989
7,392
370
1,242
5,830
4,805
921
103
8,163
12,280
FY18E
156
5,836
5,992
6,240
511
12,743
6,049
2,314
3,735
600
31
15,015
5,374
8,105
39
1,498
6,638
5,462
1,057
119
8,377
12,743
FY19E
156
7,484
7,639
6,832
511
14,983
6,664
2,655
4,009
1,100
31
17,569
6,357
9,379
62
1,772
7,726
6,461
1,146
119
9,843
14,983
FY20E
156
9,686
9,841
6,982
511
17,335
7,779
3,042
4,737
1,400
31
20,216
7,340
10,765
32
2,080
9,049
7,584
1,346
119
11,167
17,335
11 January 2018
November 2017
11

KEI Industries Ltd.
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Net Debt/Equity
FY12
3.1
5.6
29.2
0.2
6.4
119.3
66.1
12.8
2.0
22.6
0.0
2.3
21.4
25.0
2.4
62
102
87
2.1
FY13
3.4
6.0
32.9
0.2
6.2
110.2
62.0
11.4
2.0
19.7
0.0
17.2
10.9
12.9
2.2
79
93
87
1.8
FY14
1.5
4.2
35.1
0.2
14.7
250.1
89.1
10.6
2.1
22.3
0.0
7.9
4.4
9.4
2.0
91
97
87
1.8
FY15
4.2
7.3
39.1
0.4
10.9
89.1
50.8
9.5
1.6
17.4
0.1
23.3
11.3
14.4
2.6
79
86
86
1.5
FY16
8.0
11.2
47.1
0.5
7.5
46.7
33.2
7.9
1.5
14.0
0.1
11.3
18.6
17.9
2.6
66
89
68
1.3
FY17
12.7
16.3
60.9
0.6
5.7
29.4
22.9
6.1
1.3
13.0
0.2
-7.5
23.5
18.5
2.2
68
101
66
1.4
FY18E
17.0
21.2
77.0
0.7
5.0
21.9
17.6
4.8
1.1
10.5
0.2
23.6
24.7
18.7
2.5
61
92
62
1.0
FY19E
22.3
26.6
98.2
0.9
4.9
16.8
14.0
3.8
0.9
8.9
0.2
9.5
25.4
19.7
2.5
61
90
62
0.9
FY20E
29.8
34.8
126.5
1.3
5.0
12.5
10.7
2.9
0.8
7.3
0.3
15.0
26.5
20.5
2.6
60
88
62
0.7
Cash Flow Statement
Y/E March
FY12
OP/(Loss) before Tax
360
Depreciation
195
Interest & Finance Charges962
Direct Taxes Paid
-51
(Inc)/Dec in WC
-1,181
CF from Operations
285
Others
37
CF from Operating incl EO 322
(Inc)/Dec in FA
-146
Free Cash Flow
176
(Pur)/Sale of Investments
0
Others
2
CF from Investments
-145
Issue of Shares
0
Inc/(Dec) in Debt
484
Interest Paid
-962
Dividend Paid
-16
Others
235
CF from Fin. Activity
-258
Inc/Dec of Cash
-81
Opening Balance
124
Closing Balance
44
FY13
431
204
1,094
-90
-181
1,458
35
1,493
-151
1,341
0
1
-150
59
-122
-1,094
-16
-58
-1,230
113
44
156
FY14
218
210
1,115
-55
-711
777
57
835
-220
615
0
1
-219
49
-111
-1,115
-16
467
-727
-111
156
46
FY15
529
246
1,204
-92
47
1,933
46
1,979
-168
1,811
0
1
-166
5
148
-1,204
-18
-742
-1,811
1
46
47
FY16
953
253
1,270
-196
-508
1,772
81
1,853
-977
876
0
1
-975
0
448
-1,270
-37
-7
-866
12
47
59
FY17
1,338
280
1,229
-304
-2,588
-45
83
38
-624
-585
0
5
-618
20
-538
-1,229
-46
2,685
891
311
59
370
FY18E
1,812
324
1,219
-489
-545
2,321
84
2,406
-573
1,832
0
50
-523
0
-879
-1,269
-66
0
-2,213
-331
370
39
(INR Million)
FY19E
2,474
341
1,224
-742
-1,443
1,854
0
1,854
-1,115
739
0
50
-1,065
0
593
-1,274
-84
0
-766
23
39
62
FY20E
3,313
387
1,228
-994
-1,354
2,580
0
2,580
-1,415
1,165
0
50
-1,365
0
150
-1,278
-117
0
-1,245
-30
62
32
11 January 2018
November 2017
12

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November 2017