KEI Industries shares: Down 15% in one month! Jefferies India sees 45% upside after Q2 results 2026 | Target, rationale
Stocks to buy after Q2 Results 2026 | KEI Industries shares: KEI Industries shares are one of the beaten-down stocks on Dalal Street. In YTD, KEI Industries' share price has fallen by over 14%, while over the past six months it has corrected by over 20%. In one month, this stock has fallen by over 15%. However, Jefferies India is highly bullish on KEI Industries' shares following the announcement of Q2 results 2026 on Wednesday, 21 October 2026.
According to the Jefferies India report dated 22 October 2026, KEI Industries' Q2 results are better than the global investment bank's estimates. Jefferies has given a ‘buy’ tag with a KEI Industries share price target of ₹6,150, 45% higher than the stock price of ₹4,239.95, as per Jefferies' accounting. If we compare KEI Industries' share price target mentioned above with today's close of ₹3,873, the upside target is around 58%.
Highlighting the reason for giving a ‘buy’ tag to KEI Industries shares, the Jefferies India report said, “September Quarter EBITDA was 10% ahead of our estimates, led by a 13% beat on sales. EBITDA margin was 10% vs 9.9% YoY and 12.4% QoQ. Higher commodity prices have been passed on, resulting in optically lower absolute EBITDA margins, though EBITDA has beaten. Management updated FY27E guidance of revenue growth to 25% vs 20-25% given in June Quarter and margin to 11% vs 11-12%. We remain confident in 19%+ medium-term EPS CAGR.”
Reviewing KEI Industries' Q2 results 2026, the Jefferies India report said that KEI’s contribution from retail rose to 59% of sales vs 54% YoY. Focus continues on strengthening the dealership network, with 46 dealers added YoY and 18 QoQ, bringing the total to 2,146. UltraTech Cement (UTCEM IN, ₹10,885, Buy) launched its cables & wires brand in September 2026 and is expected to initially focus on wires & low-tension cables, competing with KEI’s retail segment. Our PT factors in KEI’s retail market share sustaining at 22% over FY27E-30E.
“We believe that in case its market share does suffer, it is in a comfortable position to offset this through domestic power transmission cable sales and exports. Exports rose 7% YoY on a high base of 117% YoY growth in the Sept 2025 Qtr, including some spillover of dispatches to the Middle East from the June Quarter,” the global investment bank's report added.
29% of KEI’s Sept Qtr revenues came from institutional sales, largely driven by power T&D cables. Jefferies India believes power transmission capex will rise 2.6x in FY26E-30E vs FY21-25, which should see the company's transmission cables business see an uptick in FY27E-29E. KEI’s capacity expansion at Sanand has begun commissioning in phases, starting in December 2025, and should drive this growth going forward. Extra High Voltage (EHV) cables within Power T&D are highly profitable as only two domestic players, KEI and Universal Cables, are present. They cater to ₹12 bn+ of the ₹30 bn market, with the balance being imported.
On suggestions to stock investors regarding KEI Industries shares after the Q2FY27 results, the Jefferies India report said, "Our PT (Price Target) of ₹6,150 values the company at 40x P/E Sept 28E, which we believe factors in some multiple compression due to a more aggressive launch by UltraTech vs perceived earlier. This is a premium to the last 5-yr avg of 36x P/E, as visibility on exports and power transmission is improving. Our EPS factors in 20% CAGR over FY26-29E. Downside risk: Sharp pricing competition in cables.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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HomeMarketsStock MarketsKEI Industries shares: Down 15% in one month! Jefferies India sees 45% upside after Q2 results 2026 | Target, rationale
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