BofA initiates coverage on Polycab, KEI with buy ratings; sees up to 22% upside

Bank of America has initiated coverage on KEI Industries with a 'buy' rating, projecting a potential upside of up to 22%. This positive outlook is driven by the bank's expectation that India's wires and cables industry will grow at a 14% compound annual rate between FY26 and FY29. This growth is anticipated to be fueled by increased spending on infrastructure, renewable energy projects, and power grid upgrades.

For investors, this rating signals strong confidence in KEI's ability to benefit from the broader expansion of the domestic power sector. The bank's forecast suggests that the company is well-positioned to capture market share as the government and private sectors invest heavily in modernizing the nation's electrical infrastructure. This development highlights the sector's growth potential amidst rising demand for reliable power distribution and clean energy solutions.

Investors should monitor the company's execution on its growth strategies and its ability to secure large-scale infrastructure contracts. Keeping an eye on policy changes related to power distribution and government spending will also be crucial to understanding the sector's future trajectory.