Cables and Wire stocks fall for second session as Aditya Birla Group's foray weighs on sentiment

Cables and Wires stocks decline for second straight session since Aditya Birla Group's major announcement

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26 Aug, 2025 12:21

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A day after Aditya Birla Group's major announcement to foray into the cables and wires segment through the group's flagship, Ultratech Cement, stocks across the space continue to record decline in their prices. As of February 28, Polycab India shares have dropped 1.7 percent, while KEI Industries fell 3.2 percent. Havells India 2.82 percent. Meanwhile, Ultratech Cement shares saw a decline of over 2 percent at intraday.

On February 27, Ultratech Cement announced plans to spend Rs 1,800 crore over two years to establish a cable and wires facility in Bharuch, Gujarat, to be commissioned by December 2026. The plans triggered a sharp sell-off across the cable and wires segment, with the street offloading shares of Ultratech Cement as well, sending it lower by over 6 percent at close.

KEI Industries, Polycab India, Havells India, and RR Kabel were among the biggest losers in trade, crumbling over 17 percent on February 27, as selling pressure mounted.

Even though majority of the analysts expect no significant effect on the segment's competitive intensity from current levels, shares continue to be under pressure for second consecutive session on February 28.

Motilal Oswal expects Ultratech’s entry to threaten valuation multiples of C&W companies, leading to erosion in stocks even through C&W companies' earnings are not going to be impacted until the plant is commissioned.

JM Financial said in a note, "The industry comprises nearly 400 players, ranging from SMEs to large enterprises, with revenue between Rs 50 crore and Rs 400 crore. The industry is, therefore, ideal for a new entrant with deep pockets."

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