Introduction:
Cable stocks fell up to 9% following the announcement of a new joint venture by a major corporate group entering the cables and wires business. The move raised competition concerns, triggering heavy selling pressure and impacting investor sentiment across the sector.
Adani Group enters cables and wires sector:
Adani Group’s entry into the cables and wires segment through a joint venture triggered a sharp fall in cable stocks. Shares of KEI Industries, Polycab India, and Havells India declined up to 9% due to increased competition concerns in the market.
The newly formed joint venture, Praneetha Ecocables Limited (PEL), involves Adani’s Kutch Copper Limited holding 50% equity alongside Praneetha Ventures. PEL will manufacture, market, and distribute metal products, cables, and wires, intensifying competition in a segment dominated by existing players.
The incorporation of PEL on March 19, 2025, signaled Adani Group’s diversification into the cables and wires business. This strategic move sparked market reactions, leading to heavy selling pressure on cable stocks amid fears of market share erosion.
KEI Industries Ltd:
On March 20, 2025, KEI Industries Limited opened at ₹3,155.25, reaching a high of ₹3,169.95, with a low of ₹2,806.15, down 13.13% from its previous close of ₹3,283.25. The stock is currently trading at ₹2,852.10, with a market cap of ₹27,252.56 crore.
KEI Industries Ltd (NSE: KEI) is a leading manufacturer of cables and wires, offering a wide range of products including power cables, control cables, and stainless-steel wires. The company caters to infrastructure, real estate, industrial, and renewable energy sectors, ensuring consistent growth.
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Polycab India Ltd:
On March 20, 2025, Polycab India Limited opened at ₹5,225.00, reaching a high of ₹5,242.05, with a low of ₹4,941.00, down 8.61% from its previous close of ₹5,438.40. The stock is currently trading at ₹4,970.00, with a market cap of ₹74,760.93 crore.
Polycab India Ltd (NSE: POLYCAB) is a prominent player in the cables and wires industry, manufacturing a diverse range of electrical products. It provides wires, cables, fans, switches, and appliances, serving power distribution, residential, industrial, and commercial sectors with a strong nationwide presence.
Havells India Ltd:
On March 20, 2025, Havells India Limited opened at ₹1,520.00, reaching a high of ₹1,520.00, with a low of ₹1,472.15, down 4.41% from its previous close of ₹1,557.95. The stock is currently trading at ₹1,489.30, with a market cap of ₹93,370.43 crore.
Havells India Ltd (NSE : HAVELLS) is a major electrical equipment company producing cables, wires, lighting, switches, fans, and appliances. The company operates across various segments, serving residential, commercial, and industrial needs, known for its innovative technology, wide product range, and extensive distribution network.
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.
