CLSA backs Polycab and RR Kabel as India’s cable market heads for another capacity cycle
The brokerage rates Polycab and RR Kabel Outperform while keeping KEI at Hold, arguing that electrification, infrastructure and manufacturing demand should outpace new capacity. It expects formalisation to reach 85% by FY30, favouring scaled brands with distribution depth and integrated manufacturing.
CLSA initiated coverage on Indian cable makers, rating Polycab and RR Kabel Outperform and KEI Hold. It expects infrastructure, electrification and manufacturing demand to outpace capacity additions, favoring firms with broad portfolios, distribution scale, brands and integrated manufacturing.
Why this matters
No prior related signals were supplied. The CLSA call adds an external demand-and-formalisation catalyst for Polycab, highlighting scale, distribution reach and integrated manufacturing as advantages in the next capacity cycle.
Retail-company signals are accelerating, up 200214% QoQ.