Analysts Are Updating Their KEI Industries Limited (NSE:KEI) Estimates After Its First-Quarter Results

It's been a good week for KEI Industries Limited (NSE:KEI) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.7% to ₹4,330. KEI Industries reported in line with analyst predictions, delivering revenues of ₹21b and statutory earnings per share of ₹64.25, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for KEI Industries

Taking into account the latest results, the current consensus from KEI Industries' eleven analysts is for revenues of ₹95.7b in 2025. This would reflect a meaningful 14% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 19% to ₹80.65. Before this earnings report, the analysts had been forecasting revenues of ₹96.0b and earnings per share (EPS) of ₹83.28 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹4,287, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on KEI Industries, with the most bullish analyst valuing it at ₹5,229 and the most bearish at ₹3,053 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that KEI Industries' rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that KEI Industries is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for KEI Industries. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹4,287, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for KEI Industries going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - KEI Industries has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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