Polycab, KEI Industries, RR Kabel price targets: Brokerage firm Motilal Oswal has reviewed the shares of leading players of cables and wires industry (C&W) such as Polycab, RR Kabel and KEI Industries.  The coverage, outlook and price targets of Polycab, RR Kabel and KEI Industries shares comes as the cables and wires (C&W) industry has emerged as one of the biggest beneficiaries of India's accelerating infrastructure development and expanding electrification initiatives.

Growth in the sector is being driven by a broad range of end-user industries, including power transmission and distribution, residential and commercial real estate, railways, telecommunications, renewable energy projects, and industrial capital expenditure. This diversified demand profile not only provides long-term growth visibility but also limits the industry's reliance on any single segment.

The domestic C&W industry grew at a compound annual growth rate (CAGR) of 12.5% between FY22 and FY26, reaching a market size of approximately Rs 1 lakh crore. Organized players significantly outpaced the broader industry, registering growth of around 17% during the period. Consequently, the share of organized companies increased to nearly 80% in FY26 from about 67% in FY22, reflecting ongoing market consolidation and a gradual shift toward branded, quality-focused products.

Motilal Oswal has assigned a rating upgrade to RR Kabel with a BUY call. It has maintained Buy calls on Polycab and KEI Industries shares. 

Polycab reported industry-leading growth of 24%, followed by KEI /RR Kabel at 21% (each) and Havells' at 17% over FY22-26. 

"We estimate Polycab to continue delivering industry-leading growth, with 22% revenue CAGR over FY26-28, followed by RR Kabel and KEI Industries at 21% (each) and Havells at 14%," said Motilal Oswal. 

The brokerage raised EPS estimates for Polycab by 8% for FY27-28 (each), and for RR Kabel by 11% for FY27-28 (each), given the stronger revenue growth outlook supported by capacity expansions, market share gain, and margin expansion. 

The brokerage upgraded RR Kabel to Buy from Neutral with target price of Rs 2600, considering the strong growth outlook and margin expansion. It reiterated BUY rating on Polycab with target price of Rs 11950 and KEI Industries with target price of Rs 6640. "We continue to believe that the sector’s demand tailwinds will remain intact over the long term," said the brokerage.