KEI Industries Limited (NSE:KEI) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, KEI Industries Limited (NSE:KEI) recently reported its third-quarter numbers. Results were roughly in line with estimates, with revenues of ₹21b and statutory earnings per share of ₹16.67. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for KEI Industries

Taking into account the latest results, the most recent consensus for KEI Industries from eleven analysts is for revenues of ₹96.6b in 2025. If met, it would imply a sizeable 25% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 34% to ₹81.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹94.7b and earnings per share (EPS) of ₹78.14 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.3% to ₹3,237per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic KEI Industries analyst has a price target of ₹3,853 per share, while the most pessimistic values it at ₹2,308. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await KEI Industries shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 13% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 19% per year. KEI Industries is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards KEI Industries following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that KEI Industries will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for KEI Industries going out to 2026, and you can see them free on our platform here.

You can also see our analysis of KEI Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.