Goldman Sachs sees Cables & Wires sector benefiting from the infra push; stocks mixed

Shares of most cable and wire companies, including the likes of Polycab India and KEI Industries, traded mixed as Goldman Sachs was optimistic about the sector in the backdrop of the nation’s infra push. At around 9:27 am, while Polycab India traded 0.78 per cent higher, KEI Industries traded with a cut of 1.86 per cent.

Goldman Sachs in its note on India Cables and Wires said  players within the space have the potential to grow up to 2x GDP. The brokerage is of the view that incremental growth stems from sunrise industries such as electric vehicles.  Domestic upcycle & exports share gain to sustain premium valuation.

At day’s high, Polycab India touched a price of Rs 5432.55, a gain of 2.24 per cent over the previous close. KEI Industries hit a low of Rs 2902.6, a decline of over 2 per cent.

The movement in the stock comes as  the global brokerage has initiated its rating on the 2 counters in the C&W industry. For Polycab India, the brokerage has initiated a buy with a target of Rs 5750, on the contrary it is Neutral on KEI with a target of Rs 2730. The brokerage prefers Polycab over KEI due to its broader distribution network & faster growth prospects.