KEI has guided for robust 16-17% revenue growth in FY24 primarily based on the
capacity addition at its Silvassa plant and other greenfield expansion projects.
Management’s strategy of expanding its retail business also augurs well for the
company. It is difficult to say how much impact it can have due to changes in Government policies since they are focusing on diversification of product portfolio and de-risking business (retail accounts for ~44% with the target to reach 48-50%
in FY24). Further, KEI Industries has obtained UL approval for specified products to sell in the US market and has already commenced sales from January ’23 onwards.
As far as the guidance given by KEI and the focus on more retail accounts, I do not see a major impact on overall revenue at this point.
The allocation depends on your risk tolerance vs the growth of the KEI. If you really want to play safe keep just 10-20% of the allocation. Again it depends on your risk tolerance and exit strategy (when to exit). Please keep an eye on EPS CAGR vs PE CAGR as well. The valuation must be considered.
| Subscribe To Our Free Newsletter |
