Massive solar farms and wind turbines dominate headlines in India’s energy transition, but the key component required for this transition is the transformer. Transformers and this energy transition require specialised conductors, and KSH International will be the prime beneficiary of the surge in energy demand. ICICI Securities initiates a ‘BUY’ on KSH International, brokerage suggests a target price of INR 600, which implies a ~45% upside from its current market price of INR 412. Let’s check in detail what grabs ICICI’s attention.

The Transformer “Super-Cycle”

The logic behind the ICICI buy call on KSH International is simple yet profound: India’s power consumption is increasing. According to ICICI Securities, India’s transformer manufacturing capacity is set to triple from ~110 GVA to 300 GVA by FY28E. Every single one of these transformers requires specialised conductors—specifically Continuously Transposed Conductors (CTC) and Paper Insulated Copper Conductors (PICC).

KSH International sits at the epicenter of this demand. As the largest exporter and a dominant domestic player, KSH is doubling its capacity to 59,000 tonnes (59kt) to meet a surge that the brokerage describes as “accelerating, yet supply-constrained.”

ICICI Coverage on KSH International: The Moat

The industry is protected by a “bevy of approvals.” Getting qualified by giants like Power Grid (PGCIL), NTPC, and global majors like Hitachi Energy or GE Vernova can take years of rigorous testing.

• The HVDC Edge: KSH is the only Indian supplier approved for HVDC (High Voltage Direct Current) transformers.
• Global Trust: It has been supplying to Hitachi India since 1997, a relationship that paved the way for it to become a global exporter to their facilities in Europe and the US.

The “Asta” Benchmark: A Valuation Arbitrage

The most compelling part of the ICICI report on KSH is the comparison with global peer Asta Energy Solutions (ASTAG), which recently debuted on the Frankfurt Stock Exchange.

• The Valuation Gap: ASTAG is currently trading at 29x CY25 earnings.
• The KSH Discount: Despite having similar EBITDA margins per tonne and a leaner cost structure, KSH International is trading at a modest 12x FY28E earnings.

As the market begins to value KSH not as a simple wire manufacturer, but as a specialized high-tech engineering firm, a significant valuation re-rating is on the cards.

Future-Proofing with EV “Optionality”

KSH is not only a grid-focused player. Through an exclusive licensing agreement with HPW Metallwerk, the company is pioneering PEEK-insulated wires. In the world of Electric Vehicles (EVs), the shift from 400V to 800V traction motors (for heavy trucks and buses) requires wires that can withstand extreme heat while saving space. PEEK-insulated wires are the answer. This segment provides a “hidden growth engine” that the brokerage believes the market has yet to fully price in.

KSH International Post-IPO Performance

KSH International launched its IPO in December 2025. The INR 710 crore issue was subscribed to only 83% on the final day, so the issue size was reduced to INR 626.5 crore. The IPO was listed with a 7.55% discount to the issue price. Since its listing, it has remained in the consolidation phase. However, it gathered pace in the last week and made an all-time high of INR 414.85 per share, a 7.8% gains from the issue price INR 384 per share.

Financial Health: The Clean-Up Act

The financial trajectory projected by ICICI Securities is aggressive. With the capacity expansion at their new Supa facility (Unit 4) kicking in, the numbers tell a story of exponential growth:

Crucially, the company has used its recent IPO proceeds to aggressively deleverage. Total debt is expected to shrink significantly, allowing interest savings to flow directly to the bottom line.

Final Words

KSH International target price of INR 600 (20x FY28E EPS) is grounded in the reality of a structural bull run in transmission and distribution (T&D). While risks like copper price volatility and global trade tariffs remain, the sheer scale of the capacity ramp-up and the technological “moat” make KSH International a formidable player in the electrification super-cycle.

Disclaimer: This article are based on the research report by ICICI Securities. Investors should consult their financial advisors before making any investment decision

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.