Today is January 7, 2025 and in this blog you are going to get info on share market analysis of Cable companies of India.
Here are some stats like EPS, ROE and Debt related stats that will give you a lot of info :
| S.No. | Name | EPS (₹) | ROCE (%) | ROE (%) | Debt/Equity |
|---|---|---|---|---|---|
| 1 | Polycab India | 119.42 | 31.33 | 23.17 | 0.02 |
| 2 | KEI Industries | 69.20 | 27.21 | 20.25 | 0.10 |
| 3 | Finolex Cables | 35.48 | 18.68 | 14.20 | 0.00 |
| 4 | R R Kabel | 23.31 | 21.71 | 20.75 | 0.24 |
| 5 | Diamond Power | – | – | – | 0.32 |
| 6 | Sterlite Tech. | -4.75 | 4.80 | -3.52 | 0.95 |
| 7 | Universal Cables | 27.78 | 10.00 | 6.59 | 0.45 |
| 8 | Paramount Comm. | 3.26 | 14.68 | 18.39 | 0.03 |
| 9 | Dynamic Cables | 20.17 | 24.09 | 19.27 | 0.35 |
| 10 | Quadrant Future | – | 23.02 | 39.96 | 2.87 |
| 11 | V-Marc India | 14.36 | 28.86 | 28.83 | 1.36 |
| 12 | Delton Cables | 24.95 | 18.71 | 15.18 | 1.79 |
| 13 | Birla Cable | 2.41 | 9.57 | 6.89 | 0.56 |
| 14 | Plaza Wires | 0.45 | 7.54 | 4.21 | 0.18 |
| 15 | Cords Cable | 9.04 | 15.41 | 6.08 | 0.44 |
| 16 | DCG Cables | 5.81 | 36.75 | 45.43 | 0.31 |
| 17 | Aksh Optifibre | -4.87 | -33.34 | -136.32 | 3.34 |
| 18 | Ultracab India | 0.84 | 15.93 | 17.30 | 1.27 |
| 19 | Marco Cables | 2.58 | 16.91 | 13.53 | 1.42 |
| 20 | Godha Cabcon | 0.87 | 1.38 | 0.37 | 0.03 |
| 21 | Relicab Cable | 2.29 | 20.29 | 13.50 | 0.80 |
| 22 | Gem Cables & Con | – | -12.13 | -3.29 | – |
| 23 | T N Telecom. | -3.25 | -71.16 | – | – |
| 24 | Jigar Cables | 2.23 | 7.93 | 5.97 | 0.17 |
| 25 | Cybele Industrie | -8.89 | 1.56 | -0.16 | 0.41 |
| 26 | G R Cables | 0.13 | -4.38 | – | 0.77 |
| 27 | CMI | -5.20 | -3.70 | – | – |
| 28 | SGN Telecoms | -0.02 | -74.39 | -75.61 | 0.00 |
Here is a summary of the top-performing cable companies based on various parameters like market capitalization, P/E ratio, ROCE, ROE, and profit variations:
Top Picks:
- Polycab India
- CMP: ₹7162.85
- Market Cap: ₹1,07,806.97 Cr
- P/E: 60.07
- ROCE: 31.33%, ROE: 23.17%
- Quarterly Sales Growth: 30.37%
- Debt/Equity: 0.02
- Best for: Large-cap stability, high ROCE, and minimal debt.
- KEI Industries
- CMP: ₹4312.70
- Market Cap: ₹41,223.02 Cr
- P/E: 66.01
- ROCE: 27.21%, ROE: 20.25%
- Quarterly Sales Growth: 17.21%
- Debt/Equity: 0.10
- Best for: Strong mid-cap growth and healthy margins.
- Dynamic Cables
- CMP: ₹1034.70
- Market Cap: ₹2,505.50 Cr
- P/E: 53.61
- ROCE: 24.09%, ROE: 19.27%
- Quarterly Sales Growth: 52.53%
- Debt/Equity: 0.35
- Best for: High growth in sales and profitability.
- Universal Cables
- CMP: ₹838.50
- Market Cap: ₹2,923.82 Cr
- P/E: 30.33
- ROCE: 10.00%, ROE: 6.59%
- Quarterly Sales Growth: 29.07%
- Debt/Equity: 0.45
- Best for: Decent growth potential and moderate valuation.
- R R Kabel
- CMP: ₹1384.85
- Market Cap: ₹15,654.30 Cr
- P/E: 59.51
- ROCE: 21.71%, ROE: 20.75%
- Quarterly Sales Growth: 12.45%
- Debt/Equity: 0.24
- Best for: Solid margins and good profitability.
Observations:
- Polycab India and KEI Industries dominate the sector with a mix of strong market presence, high ROCE, and consistent sales growth.
- Mid-cap options like Dynamic Cables and R R Kabel provide robust growth opportunities with reasonable valuations.
- Companies with minimal debt and higher ROA (e.g., Polycab and KEI) are safer bets for long-term investments.
Why Investing in Cable Industries Might Be a Good Idea :
The cable industry has shown consistent growth in recent years and remains a promising sector for investment due to its alignment with key economic trends and infrastructure development. Here are some reasons why the cable industry is a good investment option:
1. Infrastructure and Urbanization Growth
- Government Projects: Increasing focus on infrastructure development, such as smart cities, metro rail, highways, and electrification projects, is driving demand for power cables.
- Rural Electrification: Initiatives like “Saubhagya” and schemes under renewable energy targets are fueling demand for transmission and distribution cables.
- Real Estate Boom: The rise in residential and commercial projects creates high demand for low-voltage cables and wiring.
2. Industrial Demand
- Renewable Energy: Growth in solar and wind power requires specialized cables, ensuring consistent demand.
- EV Revolution: With electric vehicle adoption rising, the need for charging infrastructure and wiring harnesses increases, directly benefiting cable manufacturers.
- Telecom Expansion: 5G rollout and optical fiber deployment are key growth areas for telecom cable manufacturers like Sterlite Technologies and Aksh Optifibre.
3. High Barriers to Entry
- Established players like Polycab India and KEI Industries dominate the market due to their scale, distribution networks, and brand recognition. This creates high barriers for new entrants and ensures profitability for leading companies.
4. Export Opportunities
- India is becoming a hub for cable exports due to its cost-competitiveness and quality standards. Companies like Polycab and KEI are expanding their global footprint, especially in regions like the Middle East, Africa, and Southeast Asia.
5. Shift Towards Organized Players
- The market is transitioning from unorganized to organized players due to GST implementation and stricter quality regulations. This benefits larger companies like Polycab, KEI, and Finolex Cables, which already comply with stringent standards.
6. Strong Financial Metrics
- Polycab India: Consistently strong ROE (23.17%) and minimal debt (Debt/Equity: 0.02).
- KEI Industries: High growth potential with a focus on the high-margin retail segment.
- Many companies in the sector have low debt and high return on capital, indicating efficient management.
7. Innovation and Diversification
- Companies are diversifying into segments like home automation, smart wiring systems, and energy-efficient cables. Polycab’s “Faster Better Safer” initiative and KEI’s focus on EPC projects showcase innovation.
- Growing emphasis on green cables that support sustainable construction projects.
Challenges to Watch:
- Raw Material Costs: Copper and aluminum price volatility can impact profitability.
- Competition: Increasing competition among smaller players can squeeze margins.
- Economic Slowdowns: Any delay in infrastructure projects can impact demand.
Why Now?
- With India’s economic growth, large infrastructure pipelines, and global energy transition trends, the cable industry is poised for a decade of robust expansion.
- Established players like Polycab and KEI have positioned themselves well to capitalize on these trends, offering attractive long-term investment opportunities.
Happy Investing