This Mid-cap Stock Has Rallied 25% in 1 Month and 174% in 1 Year: Learn More

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This Mid-cap Stock Has Rallied 25% in 1 Month and 174% in 1 Year: Learn More
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the power cables manufacturer KEI Industries Ltd (BO: KEIN ) advanced 2.23% to close Wednesday’s session at Rs 1,133.3 apiece on the BSE, after rising zooming 6% to touch an intraday high of Rs 1,172.60 on the exchange today.

The company’s stock has surged about 25% in a month, backed on a strong outlook, 50% in three months, 85% in six, and 174% in a year.

The demand for house wires and stainless steel wires have risen strongly, and the trend is expected to continue for the second half of FY22 too. For the September-ending quarter, KEI Industries has reported a growth in revenue of 30.5% at Rs 1,353 crore across all segments except EPC. However, volatility in commodity prices led to a gross margin contraction in the company, the same as its peers.

A further expected uptick in the sales figures of house wires is set to maintain strong growth in the company, as it has already taken vivid steps towards speedy distribution network expansion, and its efforts towards increasing revenue contribution from the dealer channel are starting to pay off, state analysts at brokerage firm Emkay Global Financial Services Ltd (NS: EMKS ).

With the institutional business appearing to revive and dealer sales increasing, the brokerage bets on strong topline growth for the company in the upcoming quarters. It has maintained a ‘Buy’ rating on the stock with a target price of Rs 1,240/share.

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