The Indian wire and cable market is witnessing robust growth, fueled by several key drivers such as the expansion of renewable energy, advancements in smart grid technology, increasing industrialization, and supportive government initiatives.
This sector, crucial for both electricity distribution and telecommunications, is growing rapidly and is poised to maintain its upward trajectory in the coming years.
In 2024, the wire and cable market size is projected to be valued at US$19.44 billion and is anticipated to reach US$30.11 billion by 2029, reflecting a compound annual growth rate (CAGR) of 9.14 percent from 2024 to 2029.
Here are a few cable companies that have announced ambitious capital expenditure (capex) plans and provided strong growth guidance for the upcoming years, signaling a positive outlook for the sector:
Polycab India Limited
With a market cap of Rs. 96,414.8 crores, the stock surged by 0.3 percent to Rs. 6,479.75 on Wednesday.
The company reported a significant growth in revenue from operations by 20.8 percent YoY from Rs. 3,889 crores in Q1FY24 to Rs. 4,698 crores in Q1FY25, but the net profit fell marginally by 0.3 percent YoY from Rs. 403 crores to Rs. 402 crores, during the same period.
In Q1FY25, Polycab India spent Rs. 281.3 crores in capex, up from Rs. 152.2 crores in Q1FY24 and Rs. 221.6 crores in Q4FY24.
The company plans to increase its capital expenditure by at least 30 percent, aiming for a total capex of around Rs. 1,100 crores, compared to the current range of Rs. 800–850 crores. The capex will fund both greenfield and brownfield projects at Hallol, Gujarat.
This expansion is driven by expectations of sustained demand, supported by the Centre’s ongoing infrastructure development and a rise in private capital investments.
Among these projects is a new Rs. 700 crore extra-high voltage (EHV) plant, which is expected to become operational by FY26 and start generating revenue from FY27 onwards.
Additionally, the company plans to roll out a facility for exports and a special cable facility within the next 12-18 months. The stock has delivered positive returns of around 35.2 percent in the last one year as well as 17.3 percent in six months.
Finolex Cables Limited
With a market cap of Rs. 22,619.7 crores, the shares of one of the leading manufacturers of electrical and telecommunication cables in India surged by 3.7 percent to Rs. 1,489.5 on Wednesday.
The company reported a significant growth in revenue from operations by 2.2 percent YoY from Rs. 1,204 crores in Q1FY24 to Rs. 1,230 crores in Q1FY25, accompanied by a rise in the net profit of 52.5 percent YoY from Rs. 160 crores to Rs. 244 crores, during the same period.
Finolex Cables is preparing for a major expansion with a planned capital expenditure of Rs. 500 crores over the next five years, as per a few sources.
The company’s CFO stated that Finolex aims to grow both domestically and internationally, targeting new markets in Southeast Asia and Africa.
The capex of Rs. 500 crores includes the expansion of manufacturing facilities, the adoption of advanced technologies, and improvements to the company’s supply chain infrastructure. Additionally, Finolex Cables has set a goal to reduce its greenhouse gas emissions by 2030 significantly.
The stock has delivered positive returns of around 45.7 percent in the last one year as well as 40.5 percent in six months.
KEI Industries Limited
With a market cap of Rs. 38,758.7 crores, the stock surged by 0.4 percent to Rs. 4,318.5 on Wednesday.
The company reported a significant growth in revenue from operations by 15.5 percent YoY from Rs. 1,783 crores in Q1FY24 to Rs. 2,060 crores in Q1FY25, accompanied by a rise in net profit by 24 percent YoY from Rs. 121 crores to Rs. 150 crores, during the same period.
In Q1FY25, the company’s capacity utilisation was nearly 88 percent in the cable division, 80 percent in the house wire division, and 90 percent in the stainless steel wire division.
During the same period, KEI Industries incurred a capex payment of Rs. 145 crores, which included Rs. 76 crores for the new Sanand project near Ahmedabad, Rs. 24 crores for Chinchpada in Silvassa, Rs. 21 crores for Bhiwadi, Rs. 14 crores for Pathredi, and Rs. 10 crores for various other plant locations.
Additionally, the company has initiated Brownfield capex at Chinchpada to expand capacity for wires, house wires, and empty power cables, with completion expected in Q2 FY25.
KEI Industries is currently undertaking a Greenfield/Brownfield expansion at Pathredi in the Bhiwadi area, with a cost of ~Rs. 125 crores. This expansion is anticipated to boost its capacity of LT power cables by Rs. 800-900 crores per annum, which will be operational in Q2FY25.
This Brownfield capex is expected to drive KEI Industries’ growth by 16-17 percent in FY25. Additionally, the company has planned a Greenfield expansion in Sanand, Gujarat, with a capex of Rs. 900-1,000 crores for LT, HT, and EHV cables.
Further, the company will allocate Rs. 500-600 crores in the next financial years to complete this project, aiming to achieve a CAGR of 15-16 percent in the future, compared to the 14-15 percent CAGR achieved over the past 15 years.
The stock has delivered positive returns of around 88.5 percent in the last one year as well as 34.4 percent in six months.
Written by Shivani Singh
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