UltraTech Cement's commencement of commercial production of wires and cables at its Gujarat facility has emerged as a key catalyst for the cable and wires sector. The facility, with an installed capacity of around 11 lakh km, is expected to intensify competition for established players and keep cables and wires stocks in focus. As per The Economic Times, UltraTech's entry is part of its strategy to diversify its building-materials portfolio and tap growing demand for wires and cables. The company has committed ₹888 crore of the total ₹1,800 crore investment as of June 2026, with regulatory certification received and trial production of Light Duty Cables underway. This development comes after UltraTech announced its entry in February 2025, with the company's board approving the proposal to extend its construction value chain footprint through its Building Products Division.
Bank of America (BofA) initiated coverage on Polycab India and KEI Industries with 'Buy' ratings, driving both stocks higher on Thursday, August 27. According to reports from CNBC TV18 and The Economic Times, BofA 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 assigned a target price of ₹6,300, indicating an upside of 13.7% from its previous close of ₹5,540. However, The Economic Times reports that BofA's latest targets are ₹11,000 for Polycab (22% upside) and ₹6,300 for KEI (14% upside). At the current price levels, Polycab trades below BofA's target, offering the full potential upside, while KEI Industries has seen its upside moderated following its sharp year-to-date rally but remains attractive from a valuation perspective.
BofA described Polycab as a 'steady structural compounder', highlighting its position as an industry leader with what it sees as the strongest competitive position in the wires and cables segment. As reported by CNBC TV18, the brokerage said five moats underpin Polycab's market share, margins and returns, while acknowledging that competition remains a risk. However, BofA believes the risk is currently overestimated. The Economic Times reports that Polycab leads the industry with a 24% market share and is BofA's preferred play on franchise quality. The brokerage expects Polycab's revenue to grow at a 19% CAGR through FY29, helped by market-share gains and higher exports, with earnings growing at an 18% CAGR over the period. The stock was trading 0.78% up at ₹9,130.50 following BofA's initiation, having advanced 19% since January and delivered over 28% returns in the last 12 months. The broader analyst consensus remains supportive with 26 of 35 analysts covering the stock having a 'Buy' rating, while the 12-month consensus target price stands at ₹10,214, implying around 12.7% upside.
For KEI Industries, BofA initiated coverage with a 'Buy' rating and target price of ₹6,300, implying 13.7% upside from the previous close of ₹5,540. According to CNBC TV18, the brokerage termed KEI a 'growth leader' and said it is the fastest-growing player in the wires and cables space. The Economic Times reports that KEI holds a 9% market share and offers a faster growth profile, with BofA expecting revenue and earnings to grow at 22% and 20% CAGRs, respectively, through FY29. This growth is supported by capacity expansion and an improving product mix, with the Sanand plant expected to drive the next leg of growth as capacity ramps up. The stock was trading 0.63% up at ₹5,575 on Thursday, having gained more than 23% so far in 2026 and over 44% in the last one year. While BofA acknowledged that competition risk is real, it believes the risk is overestimated. The brokerage also noted that the stock's upside has been moderated following its sharp year-to-date rally, but said the valuation remains attractive. For KEI Industries, 14 of 27 analysts covering the stock have a 'Buy' rating, while 12 have a Hold rating and one has a Sell rating, with the 12-month consensus target price at ₹5,880, implying around 6.3% upside.
The India Wire and Cable Market is expected to grow from $21.22 billion in 2025 to $23.13 billion in 2026 and is forecast to reach $35.58 billion by 2031 at 9.01% CAGR over 2026-2031, as per Mordor Intelligence. Housing demand, renewable-energy targets, and rapid telecom upgrades are converging to keep large-volume orders flowing to cable makers, while mandatory BIS certification is nudging buyers toward organised suppliers. Utility projects linked to the government's pledge of 500 GW of non-fossil capacity by 2030 are creating multi-year procurement pipelines for extra-high-voltage products, while 5G fiberisation and data-centre corridors are expanding the addressable market for low-loss optical-fiber cables. Competitive intensity is rising as new copper smelters and backward-integration moves lower raw-material risk for large entrants, prompting incumbents to accelerate capacity and brand investments. After Q1 FY27 earnings, market experts noted that the performance was in line with expectations, with major companies like Polycab and RR Kabel recording strong revenue and profit growth, though the majority of gains were driven by higher copper prices.
