KEI Industries Vs Polycab Wires – Best Cable Stocks

Company Overview of Polycab Wires Ltd

Polycab India Limited is a company that manufactures wires and cables and is involved in the fast-moving electrical goods (FMEG) industry. The company has three main segments: Wires and cables, FMEG and Others. 

The Wire and Cable segment focuses on manufacturing and selling wires and cables. The FMEG segment includes products such as fans, LED lighting, switches, solar products, pumps and domestic appliances. The Others segment comprises the company’s engineering, procurement and construction (EPC) business, which involves designing, engineering, supplying materials.

Company Overview of KEI Industries Ltd

KEI Industries Limited, located in India, is a manufacturer of wires and cables. The company is divided into segments including Cables and Wires, Stainless Steel Wire, Engineering, Procurement and Construction (EPC) Projects. 

The Cables and Wires segment focuses on producing and selling a wide range of power cables such as low tension (LT), high tension (HT) and extra high voltage (EHV), as well as control and instrumentation cables, speciality cables, elastomeric/rubber cables, flexible and house wires and winding wires. The Stainless Steel Wire segment involves the manufacturing, sale and job work associated with stainless steel wires.  

The Stock Performance of Polycab Wires Limited

The table below displays the month-by-month stock performance of Polycab India Ltd for the past year.

The Stock Performance of KEI Industries Limited

The table below displays the month-by-month stock performance of KEI Industries Ltd for the past year.

Fundamental Analysis of Polycab Wires Ltd

Polycab India Ltd is a leading manufacturer and provider of electrical goods, specializing in wires, cables and various electrical equipment. Established in 1964, the company has built a strong reputation for its commitment to quality and innovation. With a vast distribution network and numerous manufacturing facilities, Polycab caters to a diverse range of customers across multiple sectors, including construction, infrastructure and consumer markets. 

The stock is currently trading at ₹5,414.20 with a market capitalization of ₹83,497.62 crore. It has delivered a 5-year CAGR of 38.77% and a 5-year average net profit margin of 8.88%. Despite a 13.54% return over the past year, the stock remains 40.46% below its 52-week high.  

• Close Price ( ₹ ): 5414.20
• Market Cap ( Cr ): 83497.62
• Dividend Yield %: 0.54 
• 1Y Return %: 13.54
• 6M Return %: -18.18
• 1M Return %: -18.14
• 5Y CAGR %: 38.77
• % Away From 52W High: 40.46
• 5Y Avg Net Profit Margin %: 8.88 

Fundamental Analysis of KEI Industries

KEI Industries Ltd. is a prominent player in the manufacturing of electrical cables and conductors in India. Established in 1968, the company has gained a reputation for delivering high-quality products, including power, telecom and speciality cables. KEI’s commitment to innovative technology and stringent quality standards has positioned it as a trusted name in the industry, catering to a diverse range of sectors such as energy, infrastructure and construction.  

The stock is currently priced at ₹3,447.25, with a market capitalization of ₹32,526.10 crore. Despite a strong 5-year CAGR of 45.49% and a 5-year average net profit margin of 6.44%, recent performance has been weak, with a 6-month decline of 21.07% and a 16.71% drop in the past month.  

• Close Price ( ₹ ): 3447.25
• Market Cap ( Cr ): 32526.10
• Dividend Yield %: 0.10 
• 1Y Return %: 5.22
• 6M Return %: -21.07
• 1M Return %: -16.71
• 5Y CAGR %: 45.49
• % Away From 52W High: 46.19
• 5Y Avg Net Profit Margin %: 6.44 

Financial Comparison of Polycab Wires and KEI Industries

The table below shows a financial comparison of Polycab India Ltd and KEI Industries Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of Polycab Wires Limited and KEI Industries Limited

The table below shows a dividend paid by the company.

Advantages and Disadvantages of Investing in Polycab Wires Limited

Polycab India Ltd

The primary advantage of Polycab India Ltd lies in its leadership position in the electrical and wire & cable industry. With a strong distribution network, diversified product portfolio and continuous innovation, the company has established itself as a trusted name in the electrical solutions market.

1. Market Leadership – Polycab India is the largest manufacturer of wires and cables in India, serving diverse sectors including infrastructure, real estate and industrial applications, ensuring strong revenue growth and market dominance.
2. Diversified Product Portfolio – The company offers a wide range of electrical solutions, including wires, cables, switches, lighting, fans and solar products, catering to both residential and industrial customers, enhancing its business sustainability.
3. Strong Distribution Network – With an extensive supply chain and a vast dealer network across India, Polycab ensures efficient product availability, helping it maintain a strong presence in both urban and rural markets.
4. Focus on Innovation – Polycab invests in research and development to introduce energy-efficient and high-quality electrical products, ensuring technological advancements and meeting the evolving needs of consumers and industries.
5. Financial Stability and Growth – The company has demonstrated consistent financial performance with strong revenue growth, profitability and expansion plans, making it a stable and attractive investment choice in the electrical and electronics sector.

The main disadvantage of Polycab India Ltd is its dependence on raw material costs, particularly copper and aluminum. Price fluctuations in these essential commodities directly impact the company’s profit margins, making cost management a crucial challenge for sustaining long-term profitability.

1. Raw Material Price Volatility – Since Polycab heavily relies on copper and aluminum, fluctuations in global metal prices can lead to increased production costs, affecting overall profitability and pricing strategies.
2. High Competition in the Industry – The electrical and wire industry is highly competitive, with strong players like Havells, KEI Industries and Finolex, making it challenging for Polycab to maintain market share and pricing power.
3. Dependency on Infrastructure and Real Estate Growth – A significant portion of Polycab’s revenue comes from infrastructure and real estate sectors. Any slowdown in these industries can directly impact demand for its products and affect sales performance.
4. Regulatory and Compliance Risks – The electrical industry is subject to government policies, safety regulations and environmental laws. Changes in compliance standards or taxation policies can increase operational costs and pose challenges for expansion and profitability.
5. Working Capital and Supply Chain Management – Managing a vast distribution network and maintaining sufficient inventory levels require significant working capital. Any inefficiencies in supply chain management or disruptions in raw material availability can lead to delays and increased costs.

Advantages and Disadvantages of Investing in KEI Industries

KEI Industries Ltd

The primary advantage of KEI Industries Ltd lies in its strong presence in the wires and cables industry, offering high-quality products for diverse sectors. With robust manufacturing capabilities and a vast distribution network, the company continues to expand its market share and revenue growth.

1. Diverse Product Portfolio – KEI Industries manufactures and supplies a wide range of cables, including power cables, control cables, instrumentation cables and house wires, catering to industries such as real estate, infrastructure and power generation.
2. Strong Domestic and International Presence – The company has a well-established distribution network across India and exports to multiple countries, ensuring steady demand and revenue growth in both domestic and global markets.
3. Robust Manufacturing Capabilities – KEI operates multiple state-of-the-art manufacturing facilities, enabling efficient production, quality control and the ability to meet large-scale industrial demands.
4. Focus on Infrastructure and Industrial Growth – With increasing investments in power transmission, real estate and industrial expansion, KEI benefits from rising demand for high-quality cables and electrical solutions.
5. Consistent Financial Performance – The company has demonstrated steady revenue and profit growth, supported by strong operational efficiency and strategic expansion, making it an attractive investment in the electrical and power sector.

The main disadvantage of KEI Industries Ltd is its reliance on infrastructure and industrial projects for revenue growth. Any slowdown in these sectors can directly impact demand for its cables and wires, affecting overall sales performance and profitability.

1. Dependence on Raw Material Prices – KEI relies heavily on copper and aluminum for cable production. Fluctuations in global commodity prices can increase manufacturing costs, leading to margin pressures and pricing challenges.
2. High Competition in the Industry – The electrical cables market is highly competitive, with strong players like Polycab, Havells and Finolex. Intense competition puts pressure on pricing and limits market expansion opportunities.
3. Vulnerability to Economic Slowdowns – Since KEI’s major customers include infrastructure, real estate and industrial sectors, any downturn in these industries can lead to lower demand and reduced revenue growth.
4. Working Capital and Debt Management – The company requires significant working capital to maintain inventory and manage supply chains efficiently. Inefficient debt management or liquidity issues can affect operational efficiency and profitability.
5. Regulatory and Compliance Risks – Changes in government policies, taxation and environmental regulations can impact production costs, compliance requirements and overall business operations, posing challenges to long-term sustainability and growth.

How to Invest in KEI Industries and Polycab Wires Stocks?

To invest in KEI Industries and Polycab Wires stocks, you need to open a demat and trading account with a reliable stockbroker, conduct thorough market research and execute trades strategically. A trusted broker like Alice Blue can help streamline the investment process.

1. Open a Demat and Trading Account – Choose a reputed broker like Alice Blue to open a demat and trading account. This account is essential for buying, selling and holding KEI Industries and Polycab Wires stocks in electronic format.
2. Conduct Market Research – Analyze financial reports, industry trends and stock performance before investing. Understanding the revenue growth, market positioning and future prospects of KEI Industries and Polycab Wires helps make informed investment decisions.
3. Use a Reliable Stockbroker – Selecting a broker like Alice Blue ensures access to advanced trading platforms, research tools and low brokerage fees, helping investors track and trade KEI Industries and Polycab Wires stocks efficiently.
4. Place Buy Orders Strategically – Search for KEI Industries and Polycab Wires stocks on your broker’s platform, decide on an investment amount and place a buy order at either a market or limit price to match your investment strategy.
5. Monitor and Manage Investments – Regularly track stock performance, company news and market trends. Implement stop-loss and profit-booking strategies to minimize risks and optimize long-term returns while holding these stocks in your investment portfolio.

Polycab Wires vs. KEI Industries Limited- Conclusion

Polycab is India’s largest wire and cable manufacturer, known for its strong market presence, diverse product range and robust distribution network. With consistent financial growth and innovation, it remains a leader in the electrical industry, though raw material dependency and market competition pose challenges. 

KEI Industries has established itself as a strong competitor in the wires and cables segment, with a growing domestic and international presence. Its focus on infrastructure and industrial demand drives revenue growth, but economic slowdowns, raw material price fluctuations and intense competition remain key risks.

Polycab Wires vs. KEI Industries – FAQ

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.