Why Did Cable & Wire Stocks Rise Today (8 Sept) ? Finolex Cables, R R Kabel, Polycab & KEI in Focus

Cable and wire stocks gained on Tuesday, September 8, after two sessions of selling, with Finolex Cables, R R Kabel, Polycab India and KEI Industries moving higher. Finolex Cables led the gains, while Polycab remained in focus after Jefferies maintained its Buy rating despite the recent correction.

Finolex Cables rose 5.99% to ₹1,300.50 on the NSE, while R R Kabel gained 3.07% to ₹2,460.50. Polycab India advanced 1.31% to ₹8,369.50 and KEI Industries moved 0.46% higher to ₹4,725.50.

Finolex Cables, R R Kabel and Polycab gain

The cable and wire stocks had faced selling pressure over the previous two trading sessions following UltraTech Cement's entry into the wires and cables market through its UltraVolt brand.

Polycab saw sharper pressure after the launch, with Jefferies noting that the stock had fallen around 10% over five trading sessions. The brokerage, however, retained its Buy rating and set a target price of ₹11,100, viewing the recent correction as a potential buying opportunity.

Stock	Gain	Price
Finolex Cables	5.99%	₹1,300.50
R R Kabel	3.07%	₹2,460.50
Polycab India	1.31%	₹8,369.50
KEI Industries	0.46%	₹4,725.50

UltraTech enters wires and cables

UltraTech Cement started commercial production of wires and cables at its Bharuch facility in Gujarat on September 1 under the UltraVolt brand. The plant has an initial installed capacity of around 1.1 million km of housing wires and light duty cables.

The company has committed ₹18,000 crore towards the wires and cables business and plans to increase capacity to around 3.5 million km over the next three to five years. UltraTech is targeting a No. 2 position in India's wires and cables market.

UltraVolt has started with products including housing wires, flexible wires, cables and conduits. The company plans to introduce low tension cables in the coming weeks and high tension cables next year.

Why Jefferies remains positive on Polycab

Jefferies believes UltraTech's entry could increase competition but may have a limited impact on established players such as Polycab. The brokerage noted that around 70% to 75% of Polycab's business comes from cables, while UltraTech's initial focus is more concentrated on wires.

The brokerage also pointed to the large informal market in the industry. It estimates that the informal segment accounts for around 25% of the market, leaving room for UltraTech to build its presence without necessarily triggering aggressive price competition.

Jefferies estimates that with its planned capital expenditure and an asset turnover of four to five times, UltraTech could eventually account for around 5% to 6% of the wires and cables industry's sales by FY30.

UltraTech wires business may turn profitable later

HDFC Securities expects UltraTech's wires and cables business to become EBITDA positive in FY29. The brokerage estimates that the segment could contribute around 2% of UltraTech's consolidated revenue by FY29 and potentially around 6% by FY31.

UltraTech also plans to use its existing distribution network, covering around 1 lakh retailers and more than 5,000 UltraTech Building Solutions outlets across more than 500 districts.

The company has already set up 21 distribution centres for UltraVolt and aims to fulfil most demand within 24 hours for locations within a 100 km radius.

HDFC Securities raises UltraTech target

HDFC Securities has retained its Buy rating on UltraTech Cement and raised its target price to ₹14,500. The brokerage expects the company's consolidated volume to grow at around 9% annually between FY26 and FY29, while EBITDA is expected to grow at around 17% during the same period.

The brokerage also expects UltraTech's cement volumes to rise from 197 million tonnes in FY26 to more than 240 million tonnes by early FY29.

For investors tracking Polycab, Finolex Cables, R R Kabel and KEI Industries, the next focus will be how established players defend their market share and margins as UltraTech expands its new wires and cables business.

What are the best cable and wire stocks in India right now?

Polycab India, KEI Industries, R R Kabel and Finolex Cables are among the major listed cable and wire stocks investors are watching after recent sector moves.

Is Polycab India a good stock to buy after the recent fall?

Polycab India remains in focus after Jefferies retained its Buy rating and said the recent correction could be a buying opportunity.

What is the latest Polycab India share price target?

Jefferies has a ₹11,100 target price for Polycab India, while investors are also tracking other brokerage views on the stock.

Why did Polycab India shares fall after UltraTech entered the wires market?

Polycab India shares came under pressure because UltraTech's UltraVolt entry raised concerns about stronger competition, market share and future margins.

Is UltraTech UltraVolt a threat to Polycab India?

UltraTech UltraVolt could increase competition in the wires and cables market, although Jefferies expects the impact on Polycab India to remain manageable.

What is UltraTech UltraVolt?

UltraTech UltraVolt is UltraTech Cement's wires and cables business, which has entered the market with housing wires, flexible wires, cables and conduits.

Why is UltraTech entering the wires and cables business?

UltraTech is expanding into the wires and cables market as part of its broader strategy to build businesses connected to construction and building materials.

How will UltraTech UltraVolt affect cable stocks?

UltraTech UltraVolt could increase competitive pressure on Polycab India, KEI Industries, R R Kabel and Finolex Cables as the new business expands.

Is Polycab India the best cable stock after the UltraVolt launch?

Polycab India remains one of the largest cable and wire companies, but investors are watching how its market position and margins respond to UltraTech UltraVolt.

What is Jefferies saying about Polycab India?

Jefferies has retained a Buy rating on Polycab India and sees the recent share price correction as an opportunity.

Is Finolex Cables a good stock after the UltraVolt news?

Finolex Cables is being watched closely as competition in the wires and cables sector increases, although the current news alone does not establish whether the stock is a good buy.

What is the latest Finolex Cables share price outlook?

Finolex Cables is in focus after its shares recovered following the recent sector wide selling triggered by UltraTech UltraVolt.

Is R R Kabel a good stock to buy after the UltraVolt launch?

R R Kabel remains an important listed cable and wire stock, but investors are assessing the possible impact of stronger competition on its growth and margins.

What is the latest R R Kabel share price outlook?

R R Kabel's outlook is being closely tracked as investors assess how the company's market position could change after UltraTech UltraVolt entered the sector.

Is KEI Industries a good stock after UltraTech entered cables?

KEI Industries remains a major cable and wire company, but investors are watching whether increased competition affects its market share and profitability.

What is the latest KEI Industries share price outlook?

KEI Industries remains in focus after the recent fall and recovery in cable stocks as investors assess the long term impact of UltraTech's entry.

Why are Finolex Cables shares rising today?

Finolex Cables shares recovered after the stock faced selling pressure following UltraTech UltraVolt's entry into the wires and cables market.

Why are R R Kabel shares rising today?

R R Kabel shares moved higher as cable and wire stocks recovered after two sessions of selling linked to concerns around UltraTech UltraVolt.

Why are KEI Industries shares in focus today?

KEI Industries is in focus because UltraTech UltraVolt has entered the same wires and cables market, raising questions about future competition.

Will UltraTech UltraVolt hurt Polycab India margins?

UltraTech UltraVolt could put pressure on industry pricing and margins, but Jefferies believes Polycab India's large cable business may limit the impact.

Will UltraTech UltraVolt hurt KEI Industries?

UltraTech UltraVolt could increase competitive pressure on KEI Industries, particularly if the new business expands rapidly across India's wires and cables market.

Will UltraTech UltraVolt hurt R R Kabel?

UltraTech UltraVolt adds another large competitor for R R Kabel, making market share, pricing and distribution important factors to watch.

Will UltraTech UltraVolt hurt Finolex Cables?

UltraTech UltraVolt could increase competition for Finolex Cables, although the eventual impact will depend on product mix, pricing and distribution.

What is the UltraTech UltraVolt market share target?

UltraTech is targeting a No. 2 position in India's wires and cables market as it expands its UltraVolt business.

How much is UltraTech investing in its wires and cables business?

UltraTech has committed substantial capital towards building its wires and cables business and plans to expand UltraVolt capacity over the coming years.

What products does UltraTech UltraVolt sell?

UltraTech UltraVolt has started with housing wires, flexible wires, cables and conduits, with further cable products planned as the business expands.

Can Polycab India maintain its market leadership after UltraVolt?

Polycab India has an established wires and cables business and distribution network, but its ability to maintain market leadership will depend on pricing, product mix and competition.

What are the best cable stocks to watch after UltraTech UltraVolt?

Polycab India, KEI Industries, R R Kabel and Finolex Cables are the main listed cable and wire stocks investors are watching after UltraTech's entry.

Is the correction in Polycab India a good buying opportunity?

Jefferies considers the correction in Polycab India a potential buying opportunity, although investors still need to assess competition and valuation risks.

What is the impact of UltraTech UltraVolt on Polycab India share price?

UltraTech UltraVolt has affected sentiment around Polycab India by raising concerns about competition, even as Jefferies remains positive on the stock.

What is the impact of UltraTech UltraVolt on KEI Industries share price?

UltraTech UltraVolt has affected sentiment around KEI Industries as investors assess the potential impact of a new large competitor on future growth and margins.

What is the impact of UltraTech UltraVolt on R R Kabel share price?

UltraTech UltraVolt has increased investor focus on R R Kabel's competitive position and its ability to protect market share and margins.

What is the impact of UltraTech UltraVolt on Finolex Cables share price?

UltraTech UltraVolt has added a new competitive factor for Finolex Cables, making market share and pricing trends important for investors.

Are cable stocks still good for long term investment?

Polycab India, KEI Industries, R R Kabel and Finolex Cables continue to attract attention because of the long term demand outlook for wires and cables, but competition and raw material costs remain important risks.

Which is better between Polycab India, KEI Industries and R R Kabel?

Polycab India, KEI Industries and R R Kabel have different business mixes and growth profiles, so investors are comparing their market position, margins, valuation and ability to handle UltraTech UltraVolt competition.