When we examine the stock market over the long term, it’s clear that many fundamentally strong companies have provided substantial returns to investors. These Cable Company, known for producing in-demand products, consistently deliver impressive profits both in the short and long term.
If you’re considering investing in the stock market for the long haul and aiming for significant profits, it’s wise to focus on product manufacturing companies that maintain high market demand. One standout example is a cable manufacturing company, whose products are always sought after. This company has continuously provided robust returns to investors, even amid market fluctuations.
Over time, its share price has soared from just Rs 10 to impressive heights today. This remarkable growth can be attributed to the increasing demand for its products and a significant boost in profit margins. Market experts predict that as demand for cables continues to rise, the company’s profits are likely to see a sharp increase, potentially driving its share price even higher despite any stock market volatility.
Investment Potential and Company Overview
Despite delivering returns thousands of times greater over the long term, the KIE industry company is experiencing a sharp increase in profit growth, prompting mutual funds to make significant investments in its shares once again. This trend suggests a strong outlook for the company, indicating that it could generate substantial profits for investors in the future.
Company Information
KIE industry stands as one of India’s largest cable manufacturing firms, primarily focused on providing high-quality wiring and electrical solutions for homes. Additionally, it is making strides in manufacturing and supplying wiring solutions to major industries. The company is steadily expanding its presence in global markets, supplying its products not only within India but also to numerous other countries. With a market capitalization of approximately Rs 39,900 crore, the company continues to show impressive profit growth, positioning itself for ongoing success.
Company’s Profit Growth
KIE Industries is demonstrating impressive profit growth, consistently exceeding 25% annually. Over the past five years, the company’s profits have increased by more than 25%. In the financial year 2023, KIE Industries reported a net profit of Rs 477 crore, which rose to Rs 580 crore in the financial year 2024. This substantial revenue increase has allowed the company to deliver strong returns to investors over time. As a result, mutual funds are now once again making significant investments in the company’s shares.
Company Profit Growth and Shareholding
| Returns | Shareholding | Net Profit / Year (in crore) |
| 1 Month Returns: 4% | Promoter: 37.08% | 2021: 273 |
| 1 Year Returns: 77% | Public: 15.06% | 2022: 375 |
| 3 Year Returns: 546% | DII: 16.56% | 2023: 477 |
| 5 Year Returns: 1200% | FII: 30.75% | 2024: 580 |
Foreign Mutual Funds Are Increasing Their Investments
With the company demonstrating fundamental strength and expanding its presence in global markets, mutual funds anticipate significant growth in its share value in the near future. As a result, foreign mutual funds have been steadily increasing their investments in the company. Over the past year, foreign investors have acquired more than a 3% stake, raising their holdings from 27.77% to 30.75%. This upward trend in foreign investment indicates confidence in the company’s potential for future growth.
Investors Are Reaping Strong Returns
Thanks to robust profit growth year after year, this cable company is consistently delivering impressive returns to its investors. In the past year alone, the company has provided over 80% returns. Currently, its stock is trading around Rs 4400, and over the long term, it has delivered returns thousands of times greater for its investors.
From Rs 10 to Rs 4,400
This cable company has transformed investors into millionaires over the long run. On December 6, 2013, its stock was priced at just Rs 10, and it has skyrocketed by over 40,000% in the past 12 years, currently trading at Rs 4,400. During this period, investors who invested only Rs 20,000 have seen their wealth multiply significantly.
- Market Capitalization: ₹ 39,971 Cr
- Current Price: ₹ 4,428
- 52-Week High / Low: ₹ 5,040 / ₹ 2,317
- Stock P/E Ratio: 65.5
- Book Value: ₹ 349
- Dividend Yield: 0.08%
- Return on Capital Employed (ROCE): 27.2%
- Return on Equity (ROE): 20.2%
- Face Value: ₹ 2.00
Disclaimer: Investing in the stock market involves risks. The information provided here is for educational purposes only. Please consult a certified financial advisor before making any investment decisions. We are not responsible for any financial losses you may incur. Thank you!