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KEI Industries (BOM:517569) Beneish M-Score : -1.03 (As of May. 23, 2024)


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What is KEI Industries Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.03 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for KEI Industries's Beneish M-Score or its related term are showing as below:

BOM:517569' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Med: -2.19   Max: -1.03
Current: -1.03

During the past 13 years, the highest Beneish M-Score of KEI Industries was -1.03. The lowest was -3.17. And the median was -2.19.


KEI Industries Beneish M-Score Historical Data

The historical data trend for KEI Industries's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KEI Industries Beneish M-Score Chart

KEI Industries Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.92 -2.13 -2.29 -2.53 -1.03

KEI Industries Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.53 - - - -1.03

Competitive Comparison of KEI Industries's Beneish M-Score

For the Electrical Equipment & Parts subindustry, KEI Industries's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KEI Industries's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, KEI Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where KEI Industries's Beneish M-Score falls into.



KEI Industries Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of KEI Industries for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9226+0.528 * 0.9854+0.404 * 3.9895+0.892 * 1.1731+0.115 * 1.3574
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.006391-0.327 * 1.0354
=-1.03

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹15,200 Mil.
Revenue was ₹81,041 Mil.
Gross Profit was ₹19,198 Mil.
Total Current Assets was ₹36,974 Mil.
Total Assets was ₹46,565 Mil.
Property, Plant and Equipment(Net PPE) was ₹8,897 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹614 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹14,313 Mil.
Long-Term Debt & Capital Lease Obligation was ₹258 Mil.
Net Income was ₹5,807 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹6,105 Mil.
Total Receivables was ₹14,044 Mil.
Revenue was ₹69,082 Mil.
Gross Profit was ₹16,126 Mil.
Total Current Assets was ₹31,613 Mil.
Total Assets was ₹37,702 Mil.
Property, Plant and Equipment(Net PPE) was ₹5,948 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹571 Mil.
Selling, General, & Admin. Expense(SGA) was ₹2,148 Mil.
Total Current Liabilities was ₹11,176 Mil.
Long-Term Debt & Capital Lease Obligation was ₹219 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(15199.98 / 81040.8) / (14044.14 / 69081.74)
=0.18756 / 0.203297
=0.9226

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(16125.52 / 69081.74) / (19198.21 / 81040.8)
=0.233427 / 0.236896
=0.9854

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (36974.45 + 8896.96) / 46564.5) / (1 - (31613.32 + 5947.55) / 37701.52)
=0.014885 / 0.003731
=3.9895

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=81040.8 / 69081.74
=1.1731

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(570.79 / (570.79 + 5947.55)) / (613.55 / (613.55 + 8896.96))
=0.087567 / 0.064513
=1.3574

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 81040.8) / (2148.36 / 69081.74)
=0 / 0.031099
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((258.41 + 14313.35) / 46564.5) / ((219.15 + 11175.5) / 37701.52)
=0.312937 / 0.302233
=1.0354

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(5807.44 - 0 - 6105.03) / 46564.5
=-0.006391

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

KEI Industries has a M-score of -1.03 signals that the company is likely to be a manipulator.


KEI Industries Beneish M-Score Related Terms

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KEI Industries (BOM:517569) Business Description

Traded in Other Exchanges
Address
D-90, Okhla Industrial Area, Phase-I, New Delhi, IND, 110 020
KEI Industries Ltd is engaged in the manufacture and supply of power and other industrial cables. Its segments include the Wires and Cables Segment, Stainless Steel Wires Segment, Turnkey Projects/Engineering, Procurement and Construction (EPC) Projects Segment. The company generates maximum revenue from the Wires and Cables segment. Its Wires and Cables segment consists of extra high voltage (EHV), high tension (HT), and low tension (LT) power cables, control and instrumentation cables, winding wires, and flexible and house wires.

KEI Industries (BOM:517569) Headlines

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