In the day’s trade, Indian Cable stocks have plunged as Aditya Birla’s flagship company, and India’s Cement Giant UltraTech Cement makes a significant entry into the cables and wires segment with investment plans of Rs. 1,800 crores over two years to establish a production unit in Gujarat funded through a mix of internal accruals and borrowings.
The plant is expected to be commissioned by December 2026 and aims to capitalize on the sector’s robust growth following the expected future potential involving the Cables & Wires Industry expected to grow between 11 to 13 percent CAGR from FY24 to FY27 domestically.
This move is part of UltraTech’s strategy to expand its presence in the construction value chain. The entry is expected to intensify competition in the fragmented wires and cables industry, which has seen a 13 percent CAGR increase from FY19 to FY24 as per Nuvama.
The brokerage firm further had recently said that the “Indian cable and wire industry to see significant growth in exports; sector seeing a shift from unorganized to organized market”. Further, the organized player’s share increased to 73 percent in FY24 against 68 percent in FY19.
Listed below are some of the stocks that might be affected by the recent entry of Aditya Birla Group company in the Cables & Wire Industry
Polycab India
Polycab India is India’s leading manufacturer of wires and cables, also engaged in fast-moving electrical goods (FMEG), with a strong presence across various industries and a debt-free financial status.
With a market capitalization of Rs. 73,978.72 Crores, the shares of Polycab India Limited were trading at Rs. 4,918 per equity share, down 14.60 percent from its previous day’s close price of Rs. 4,606.85.
Finolex Cables
This company is India’s largest manufacturer of electrical and telecommunication cables, established in 1958, while offering a diverse range of products including wires, switches, and smart home solutions.
With a market capitalization of Rs. 12,895.08 Crores, the shares of Finolex Cables Limited were trading at Rs. 843.15 per equity share, down 6.00 percent from its previous day’s close price of Rs. 897.
KEI Industries
This RCB team sponsor is a leading Indian manufacturer of wires and cables, offering EHV, MV, and LV solutions globally, with a strong presence in EPC services and exports to over 60 countries.
With a market capitalization of Rs. 29,859.23 Crores, the shares of KEI Industries Limited were down by 20 percent and hit a lower circuit, the stock reiterated and was trading at Rs. 3,124.90 per equity share, down 17.68 percent from its previous day’s close price of Rs. 3,796.05.
Havells India
This company is a leading FMEG company with a strong global presence, manufacturing a wide range of electrical products, including home appliances, lighting, and cables, under multiple prestigious brands.
With a market capitalization of Rs. 91,771.73 Crores, the shares of Havells India Limited were trading at Rs. 1,463.80 per equity share, down 5.41 percent from its previous day’s close price of Rs. 1,547.55.
R R Kabel
RR Kabel is a leading electrical conglomerate, part of RR Global, manufacturing premium wires and cables for residential, commercial, and industrial purposes, with a global presence across over 85 countries.
With a market capitalization of Rs. 10,948.98 Crores, the shares of R R Kabel Limited were trading at Rs. 968.35 per equity share, down 12.72 percent from its previous day’s close price of Rs. 1,109.50.
Written by Santhosh S
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