BofA initiates coverage on Polycab, KEI with buy ratings

Bank of America has initiated equity research coverage on Polycab and KEI Industries, two major players in India's wires and cables sector, with buy ratings and price targets indicating up to 22% upside potential. The initiation reflects growing confidence in the listed companies' growth prospects within India's cable manufacturing landscape.

According to the announcement, BofA's analysts expect India's wires and cables industry to expand at a 14% compound annual growth rate between FY26 and FY29. This optimistic outlook is underpinned by several macroeconomic drivers, including elevated government spending on infrastructure projects, accelerating investments in renewable energy capacity, and ongoing modernization of power grid infrastructure. Additionally, the research indicated that export opportunities are expected to support industry growth during this forecast period.

The wires and cables sector serves as a barometer for India's broader infrastructure and electrification trends. Investors typically monitor this industry segment for signals about capex cycles, grid modernization progress, and renewable energy adoption rates. Rising cable demand typically correlates with sustained economic growth and increased investment in transmission and distribution networks. BofA's coverage initiation and buy recommendations suggest analyst conviction that Polycab and KEI are well-positioned to capture market share within an expanding industry backdrop over the medium term.

Source: Markets-Economic Times