KEI

(Cables & Wires, infra upcycle) - A saga

Cables are a direct play on India’s grid, renewables, housing and data-centre capex. KEI Industries looks especially interesting because growth is being built, not hoped for: greenfield capex of ~₹1,800–1,900 cr aims to lift cable capacity materially, while retail (house-wire) mix has already climbed—stabilising cash flows vs lumpy projects. Management also wants exports to scale from ~13% of revenues toward ~20% over 2–3 years as fresh capacity ramps, positioning KEI to benefit from China+1 and tariff-led openings in the US. Macro tailwinds matter here: India’s plan to integrate ~500+ GW of renewables by 2030 requires heavy transmission build-out and last-mile distribution strengthening, both cable-intensive. The nuance: everyone is expanding—organised industry CAGR is healthy, but sector-wide capex can compress RoCEs if pricing turns competitive or utilisation lags. KEI’s edge is the mix shift (retail and exports), prudent working-capital discipline (EPC de-emphasis), and a credible commissioning pipeline (Sanand) that can translate order visibility into earnings. Watch utilisation ramp, export order wins, and retail momentum vs housing cycles. If execution stays tight,

offers operating leverage to a multi-year electrification story with diversified demand drivers.