JM Financial bullish on India's cables & wires sector; stocks edge higher

KEI Industries

15/07/2025 10:07

** Shares of cable & wire makers KEI Industries KEIN.NS, Polycab India POLC.NS, and R R Kabel RRKA.NS rise between 4% to 1%

** JM Financial expects exports to be a key growth driver for Indian C&W players, citing improved global positioning and China+1 tailwinds

** Brokerage says organised players to gain share amid rising capex, regulatory tightening, and competitive intensity

** JM forecasts sector to grow at 12% CAGR to 1,253 billion rupees ($14.60 billion) by FY28 from ~900 billion rupees in FY25

** Adds new entrants like UltraTech likely to impact smaller, unorganised players more than market leaders

** Initiates coverage on Polycab (BUY, PT 7,900 rupees), KEI (BUY, PT 4,500 rupees); reinitiates coverage on RR Kabel (BUY, PT 1,640 rupees)

** YTD, KEI Industries, Polycab India and R R Kabel down 12.5%, 4.6% and 4% respectively

($1 = 85.8100 Indian rupees)

 (Reporting by Rudra Pratap Singh in Bengaluru)

 ((rudrapratap.singh@thomsonreuters.com))