Trending midcap stock: KEI Industries gains more than 9 per cent in less than a week

Midcap stocks are showing good strength recently even as BSE Midcap index is up by 3.50 per cent in one week, 13.61 per cent up in one month, and 72.11 per cent up since March lows. 

KEI Industries is one such mid-cap stock that is trending in the recent trading sessions; thus, catching investors’ attention. The stock has gone up by more than 9 per cent in the previous five trading sessions. KEI Industries is engaged in manufacturing & supply of power, industrial cables, and EPC work. 

Analysts are upbeat on KEI Industries as going forward, the company is expected to report healthy recovery in top-line & bottom-line mainly. The top-line and bottom-line are expected to improve, owing to a higher order book of approximately Rs 2,600 crore execution in the EPC segment. The company boasts of a strong distribution network even as the EHV business is expected to deliver strong growth. The exports are expected to report strong growth in the coming quarters and that augurs well for the stock prices.  

Meanwhile, KEI has reduced debt recently and delivered superlative growth in profits over the past five years. At current prices, KEI reflects a dividend yield of 0.39 per cent while its RoE is 22.3 per cent.