CLSA has outlined a bullish outlook for India’s cables and wires industry, highlighting sustained demand supported by infrastructure development, electrification, and digital growth, with leading players RR Kabel and Polycab positioned for strong gains.
CLSA has drawn a bullish line through India’s cables and wires industry, saying the sector is entering a multi-year expansion phase supported by infrastructure spending, electrification, manufacturing investment and the growth of digital networks. In coverage of RR Kabel, Polycab India and KEI Industries, the brokerage said demand should stay strong for years rather than months, as the market becomes more formal and organised players take a larger share.
The brokerage’s strongest conviction sits with RR Kabel and Polycab, both of which received “Outperform” ratings. RR Kabel was given a target price of ₹2,850, while Polycab was assigned ₹10,150. CLSA said RR Kabel’s distribution reach, export business, integrated manufacturing and brand engagement give it an edge, while Polycab’s broad product range, large sales network, brand strength and cost advantages make it one of the best placed companies in the sector.
KEI Industries, by contrast, was rated “Hold” with a target price of ₹4,800. CLSA acknowledged KEI’s execution record and technical capabilities, and said it should benefit from demand for high-voltage cables, but argued the stock already reflects much of that strength in its valuation. That leaves less room for near-term upside than the broker sees at RR Kabel and Polycab.
The broader backdrop remains supportive. CLSA expects formalisation in the industry to rise to about 85% by FY30 and says capacity, although it has doubled over the past five years, could expand again over the next five. Other brokerages have also stayed constructive on the theme: Motilal Oswal has pointed to strong demand momentum, while recent reports in the market have described the sector as heading towards a ₹1.9 trillion size by FY30. Even so, analysts have warned that new competition, including from larger industrial groups, could pressure pricing and valuations, making stock selection increasingly important.
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