Jefferies cuts KEI Industries target price by 11%. Will UltraTech’s entry put the company at risk?
Jefferies has cut its target price for KEI Industries by 11% to Rs 6,150, citing concerns over UltraTech Cement’s entry into wires and cables. The brokerage expects some retail market-share pressure but believes KEI can offset the impact through power transmission cables and exports, retaining its Buy rating on the stock.
Shares of wire manufacturer KEI Industries experienced a sharp decline of up to 4%, reaching their day low of Rs 4,446 on the BSE after international brokerage firm Jefferies reduced the target price by 11% to Rs 6,150 from Rs 6,920. Despite the price cut, Jefferies maintains a Buy rating on the stock. The brokerage highlighted UltraTech Cement's entry into the wires and low-tension cables market as a concern for KEI's future profitability, projecting a potential loss of 300 basis points in market share for KEI over FY26-30E in the retail segment with no offset from power or exports.
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