Top 10 Cable Stocks in India
The Indian wires and cables industry rides on growth in real estate, infrastructure, renewable energy, and telecommunications. Hence, there is a huge opportunity for the investors looking for some reliable stocks with proven performance. The top 10 cable stocks in India can be a valuable addition to your portfolio in terms of both capital appreciation and diversification.
This blog is meant to discuss major cable companies according to market capitalization.
Overview of the Industry
The Indian cable and wire industry is set for a boom over the next decade, growing at an 11% rate annually to reach a size of โน1,200 billion by 2030. The speedy developments of urbanization, government infrastructure programs such as smart cities, and the aggressive push toward digitization all contribute to the growth in developing economies.
The industry has witnessed some remarkable milestones within the organizations, together with extremely impressive and active financials and product innovations. Here’s a detailed examination of the best cable stocks in India and why one should watch them.
Market Information of Cable Stocks
| Company | Current Market Price(in โน) | Market Capitalization(in โน Crores) | 52-Week High (in โน) | 52-Week Low (in โน) |
|---|---|---|---|---|
| Polycab India Ltd. | 5,666 | 85,225 | 7,607 | 4,278 |
| KEI Industries Ltd. | 3,484 | 33,289 | 5,040 | 2,884 |
| Finolex Cables Ltd. | 890 | 13,612 | 1,700 | 831 |
| RR Kabel Ltd. | 1,144 | 12,959 | 1,903 | 1,118 |
| Diamond Power Infrastructure Ltd. | 91.2 | 4,836 | 194 | 28.4 |
| Sterlite Technologies Ltd. | 100 | 4,889 | 155 | 95.2 |
| Universal Cables Ltd. | 566 | 1,964 | 939 | 380 |
| Paramount Communications Ltd. | 61.2 | 1,866 | 101 | 59.7 |
| Dynamic Cables Ltd. | 725 | 1,756 | 1,095 | 337 |
| V-Marc India Ltd. | 310 | 757 | 494 | 69.6 |
Overview of the 10 Best Cable Stocks in Indiaย
1. Polycab India Ltd
About:
Initiated way back in 1968, Polycab India Ltd is currently India’s largest wire and cable manufacturer. It’s created a huge name in the industry by having products ranging from cables to fibre optics.
Key Milestones:
IPO of Polycab in 2019 is considered a huge success as it raised around โน1,345 Crores.
The company crossed โน10,000 crore revenue landmark in 2020 due to its high-quality products.
Diversification into fast-moving electrical goods (FMEG) with fans, lights, and switches.
Growth drivers:
Strategically equipped with a broad product portfolio, innovation in product development within Polycab has made it a credible choice among various cable share lists. Adding to all the prime hype building points is its strong financial performance coupled with a good exposure to exports, thus making it a potential investor interest.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 31.33% | 151.18% | 437.37% |
2. KEI Industries Ltd
About:
Founded in 1968, KEI Industries Ltd is one of the prominent and leading manufacturers of power cables, house wires and stainless steel wires in India.
Key Acquisitions and Milestones:
In 2010, they teamed up with Brugg Cables of Switzerland to introduce EHV cables.
Acquired contracts for many renovations from the government in the light of railway electrification and renewable energy.
By 2022, the company had also successfully achieved the around โน6,908.17 crores revenue threshold.
During the FY 2023-24, the company achieved a turnover of โน8,104.08 Cr.
Growth Drivers:
The strong industrial and infrastructural presence of KEI renders it a preferred stock for long-term investors.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 4.36% | 258.27% | 555.34% |
3. Finolex Cables Ltd
About:
Finolex Cables is one of India’s oldest companies, founded in 1958 as manufacturers of electrical and communication cables to serve a variety of industries, including telecommunications and automotive sectors.
Key Mile Stones:
Created the first jelly-filled telecom cables in the year 1998, which revolutionized the very core of the telecom industry.
Expanded to include electric and automobile cables in the PVC insulation during the year 2000.
Have been able to demonstrate robust financial performance wherein revenues are estimated to stand at โน3,900 crores in 2023.
Growth Drivers:
Finolex is focusing on quality and innovation, which is going to guarantee its stranglehold over the Indian cable market.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -16.53% | 91.32% | 125.22% |
4. RR Kabel Ltd
About:
RR Kabel was established in 1999 and is known for innovating and introducing eco-friendly products. It deals with industrial and household cables, too.
Key Milestones:
Very first Indian cable firm to have green wires certified in environment sustainability.
IPO: 2023, which raised another โน1,964 crores to further strengthen its financial position.
Associates with few of the major developers in the real estate sectors for the development of the projects of urban infrastructures.
Growth Drivers:
Being one of the best cable stocks in India because of focusing towards green solutions as well as products of premium quality.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -20.88% | -2.12% | -2.12% |
5. Diamond Power Infrastructure Ltd
About:
Diamond Power Infrastructure Ltd was established in 1970 with the purpose of manufacturing power cables and conductors for the utility and energy sectors.
Key Milestones:
2007 – Opened the country’s first fully integrated conductor and cable manufacturing facility. This brought the company competitive advantage and diversified sources of income.
Mainly associated with major contracts for crucial works in state electricity board projects.
Growth Drivers:
Growing Sectors that Acquired Capacity by the strength in power and innovative focus will suffice growth potential.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 217.51% | 50,877.78% | 1,66,736.36% |
6. Sterlite Technologies Ltd
About :
Sterlite Technologies Ltd is a global leader in optical fibre cables and digital network solutions. Founded in 2000.
Key milestones:
Acquired Elitecore Technologies as a software and digital enhancement in 2015.
Partnerships with telecom operators set up in 2021 to enable the rollout of the 5G services in India.
The footprint has expanded globally, and a large chunk of the revenue is through exports.
Growth Drivers:
Sterlite tops the list of cable share for the industry, remains at the leadership position in the telecom sector, and keeps its eye on future-ready technologies.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -27.57% | -51.24% | -19.09% |
7. Universal Cables Ltd
About:
Universal Cables was established in 1962 in association with the MP Birla Group and is concerned only with power and special types of cables.
Key Milestones:
In 2009, the company collaborated with Japan’s Furukawa Electric Industries to form a joint venture for the manufacture of optical fiber cable in India.
The company supplied cables for metro rail and high-speed rail projects in India.
The company had revenues of โน1,800 crores solely from the solid order book in the year 2023.
Growth Drivers:
With strategic partnerships and high-quality products, Universal Cables is rightly placed as one of the top contenders among the top 10 cable stocks in India.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 14.42% | 244.50% | 250.81% |
8. Paramount Communications Ltd
First founded in 1955, this has been a company involved in manufacturing power and telecom cables. Paramount Communications Ltd designs products to serve both government and private sectors.
Key Milestones:
Helped in the supply of cables for the Delhi metro project.
Expand to the European markets, adding export revenues.
It is developing growth steadily depending on contracts in the defense and aerospace markets.
Growth Drivers:
Niche expertise of paramount brings a positive outlook in future investments.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -37.29% | 375.10% | 730.61% |
9. Dynamic Cables Ltd
About:
Dynamic Cables is a company that was founded in 2007 and is focused on the manufacturing and supply of various cables for power transmission, distribution, and projects in the renewable energy sector.
Key Milestones:
Enlarging the capacity of production dramatically increased the output in 2018.
Top supplier for solar power in India.
Constant and sustainable growth in financials due to strong domestic and international demand.
Growth Drivers:
Dynamic Cables is all aligned to the green targets set for India, which promise a future avenue for further growth.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 64.07% | 406.96% | 406.96% |
10. V-Marc India Ltd
About:
V-Marc India was set up over forty years ago, in 1971, especially to manufacture industrial and power cables.
Key Milestones:
Started with control and instrumentation cables as part of its portfolio in 2015.
Started cooperating with global distributors to further its global reach.
Has registered a CAGR of 20% revenue over the last five years.
Growth Drivers:
V-MArc has innovation and a strong export network making it a reliable share market player in the wire company share market.
| Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 78.16% | 638.10% | 566.67% |
Key Metrics for Comparison
From fibre-optic to electrical cables, they form the backbone of India’s infrastructure. Here are the top cable sector stocks to look out for:
| Company | Net Profit Margin (%) | RoE(%) | ROCE(%) | D/E | EV/EBITDA |
|---|---|---|---|---|---|
| Polycab India Ltd. | 9.99 | 21.79 | 29.02 | 0.01 | 27.96 |
| KEI Industries Ltd. | 7.16 | 18.44 | 25.58 | 0.04 | 34.53 |
| Finolex Cables Ltd. | 10.08 | 13.17 | 13.58 | 0.00 | 20.40 |
| RR Kabel Ltd. | 4.50 | 16.28 | 23.80 | 0.16 | 33.45 |
| Diamond Power Infrastructure Ltd. | 4.95 | -1.74 | 1.73 | -0.32 | 67.97 |
| Sterlite Technologies Ltd. | -1.11 | -2.52 | 9.26 | 1.59 | 11.57 |
| Universal Cables Ltd. | 1.69 | 6.09 | 6.94 | 0.43 | 12.63 |
| Paramount Communications Ltd. | 8.15 | 13.71 | 13.66 | 0.16 | 21.98 |
| Dynamic Cables Ltd. | 4.91 | 17.65 | 32.26 | 0.56 | 11.22 |
| V-Marc India Ltd. | 4.75 | 25.20 | 34.45 | 1.32 | 5.24 |
Why Invest in Cable Stocks?
The development of this lucrative sector should be promoted in the following ways:
- Government Initiatives: Initiatives such as smart cities, metro rail, and rural electrification would increase demand for wires and cables.
- 5G: Telecom expansion has taken a new dimension with the healthcare sector.
- Renewable Energy: Power cables are heavily demanded in renewable solar and wind energy projects.
Advantages and disadvantages of investing in cable stocks
Advantages
- High Growth Potential: Due to infrastructure development and digitization, the industry has enormous growth potential.
- Diversified Applications: Be it real estate, telecom, or energy, cables are unavoidable .
- Dividend Potential: Established companies such as Polycab and KEI generally provide dividends.
Disadvantages
- Capital-Intensive: The industry involves substantial investment in machinery and technology.
- Cyclicality: Demand tends to fluctuate with the economy
- Competition: Both domestic and foreign players amplify market competition.
Future of Cable Industry in India
The Indian cable industry has prospects for massive growth, as below:
- Urbanization: More population in cities drives the demand for modern infrastructure.
- 5G rollout: Huge opportunities for Optical Fiber Cables are being presented due to the expansions of Telecom industries.
- Renewable Energy: Solar and Wind energy projects call for special Power Cables.
- Industrial Development: Emerging Industrial Requirements will be shaped in light of Automation, Robotics and IT Infrastructure.
- Exports: Cable Qualities along with costs can open opportunities to export the Indian material everywhere around the world.
- Sustainable Solution: Ecofriendly Materials and practices guarantee future use and applicability.
- Techno innovations: They are IoT Enabled Fire Resistance Cables thereby catering to newer demands.
- Investment in R&D: These generate avenues for the new growth of advanced technology and customized techniques.
The sustainability approach and product innovations ensure the survival of the Industry in the Long Run.
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Conclusion
This unique opportunity in investing makes for the best cable stocks in India where investment can be done for companies with high growth drivers, infrastructure development, digital transformation, and extension of renewable energy. Although Polycab India, KEI Industries, and Finolex Cables have continued to perform, some new companies, such as RR Kabel and Dynamic Cables, show tremendous potential for growth.
Investing in these stocks lets you gain exposure to the growing Indian cables industry. Be it for a long or short period, dividends can be expected from these top 10 cable stocks in India, which can also be a strong part of a balanced portfolio.
FAQs
Which are the best cable stocks in India for long-term investment?
The best stock in the cables sector is Polycab India, KEI Industries, and Finolex Cables as they have robust fundamentals.
What is the cable share price of Polycab India?
The cable share price of Polycab India as of 12 February 2024 is about โน5,666.
How do I analyze the top 10 cable stocks in India?
Analyze market cap, revenue growth, historical performance, and industry trends before making any investment decision.
What are the growth drivers for the share market of the wire company?
Main growth drivers will be urbanization, 5G rollout, and renewable energy projects.
How to get the updated cable share list?
You can refer to the latest lists on the financial platforms, such as NSE, BSE, or stock market applications.
