Bank of America (BofA) has initiated coverage of two of India's leading wires and cables manufacturers — Polycab India and KEI Industries — with Buy ratings, citing its outlook for structural growth in the sector. Initiation coverage by a major global brokerage often draws investor attention to the covered names, as it establishes a formal analytical view on the companies for institutional clients.

Target Prices and Implied Upside

BofA has set a target price of ₹11,000 for Polycab, implying an upside of 21.4% from its previous close of ₹9,060. For KEI Industries, the brokerage has assigned a target price of ₹6,300, indicating an upside of 13.7% from its previous close of ₹5,540.

BofA on Polycab

BofA's bullish stance on Polycab is anchored in its view of durable, structural demand growth in India's wires and cables industry. Polycab is one of India's largest manufacturers of wires and cables, with a product portfolio that also spans fast-moving electrical goods (FMEG) and other electrical products. The diversification into FMEG and electrical products gives the company exposure beyond core cables, a segment that also competes with other large Indian players such as Havells and RR Kabel.

BofA on KEI Industries

For KEI Industries, BofA similarly highlighted structural growth prospects. KEI Industries is a major Indian producer of wires and cables, including low-tension, high-tension, and extra-high-voltage cables, serving both consumer and industrial customers. Its presence across voltage categories positions it to serve both residential construction demand and large infrastructure and industrial projects.

Stock Movement

Shares of both companies rose following the initiation of coverage, as reported by CNBC-TV18. The broader context for the sector has been strong demand driven by infrastructure development, electrification, and power transmission investment in India. Government-led initiatives on power grid expansion and housing have been recurring demand drivers for electrical equipment makers. What remains to be watched ahead is how order flows and capacity expansion plans at both companies track this demand, along with any subsequent rating or target price revisions from other brokerages covering the sector.

Source: CNBC-TV18