CLSA sees India’s wires and cables leaders gaining share as demand accelerates
CLSA has initiated Outperform coverage on Polycab India and RR Kabel, while rating KEI Industries Hold. The brokerage cites infrastructure spending, electrification, manufacturing growth, premiumisation and exports as key demand drivers for organised cable makers through FY26–FY30.
What happened
CLSA initiated Outperform coverage on Polycab India and RR Kabel and Hold on KEI Industries, citing India’s infrastructure, electrification and manufacturing
Key facts
- Polycab target price: Rs 10,150; nearly 14% upside
- RR Kabel target price: Rs 2,850; around 14% upside
- KEI Industries target price: Rs 4,800
- Polycab FY26-30 revenue CAGR: 17%; PAT CAGR: 15%
- KEI FY26-30 revenue CAGR: 20%; PAT CAGR: 17%
- RR Kabel FY26-30 revenue CAGR: 18%; PAT CAGR: 24%
Why this matters
The expected growth in cables heightens the strategic value of acquisitions or partnerships in regional distribution, specialised high-margin cables, export channels and manufacturing capacity.
What to watch
- Quarterly volume growth versus copper-price-led value growth.
- Dealer additions, electrician engagement metrics and expansion in tier-2/tier-3 markets.
- Capacity commissioning timelines and utilisation levels at major manufacturers.
- Government and private capex trends in transmission, renewables, railways, data centres, real estate and manufacturing.
- Copper/aluminium prices, pass-through lag and receivable-days movement.
- Evidence of market-share gains relative to regional and unorganised competitors.
- Polycab, RR Kabel and KEI are likely to accelerate capacity additions, dealer onboarding and electrician/contractor loyalty programmes.
- Brands may widen their electrical ecosystem through cross-selling of FMEG, switches, lighting, conduits and home-electrification products.
- Distributors and electrical retailers may allocate more shelf space, credit and local promotion to fast-moving national cable brands.
- Smaller unorganised cable suppliers may face greater compliance, warranty and pricing pressure, prompting consolidation or migration to private-label supply.