The advent of the Internet has transformed the world digitally. However to experience good internet connectivity, one requires a strong groundwork of cable connections and network.
In addition to the Internet industry, other industries such as telecommunications, power, automotive, and construction are also driving growth in the wire and cable market.
Stocks in the cable industry include companies that produce and distribute electrical cables, fiber optic cables, and other wiring solutions.
In this blog, let’s cover top wire and cable manufacturers in India and highlight their product offerings and distinctive features.
|
S.No.
|
Name
|
P/E Ratio
|
Market Capital
|
Quarterly Net Profit
|
ROCE %
|
|
1
|
Polycab India
|
55.65
|
99857.17
|
445.21
|
31.33
|
|
2
|
KEI Industries
|
57.86
|
36135.38
|
154.81
|
27.21
|
|
3
|
Finolex Cables
|
26.28
|
19314.38
|
243.92
|
18.52
|
|
4
|
R R Kabel
|
64.92
|
18646.59
|
63.89
|
21.71
|
|
5
|
Diamond Power
|
513.07
|
8891.44
|
16.56
|
|
|
6
|
Universal Cables
|
24.5
|
2199.08
|
5.59
|
10
|
|
7
|
Paramount Communications
|
22.01
|
2120.24
|
25.3
|
15.29
|
|
8
|
Havells India
|
78.87
|
111186.15
|
267.77
|
24.4
|
Polycab is a premier manufacturer of cables and wires and offers products like uPVC conduits, plugs and glands.
Recently, Polycab has expanded its product lineup to include consumer electrical goods such as fans, switches, switchgear, LED lighting solutions, solar inverters, and pumps.
The company is debt-free and has achieved a profit growth of 28.1% CAGR over the past five years. Polycab also offers a healthy dividend payout of 24.0%.
Havells India Limited excels as a major player in the fast-moving electrical goods(FMEG) sector and is a manufacturer of power distribution equipment.
The company offers products like industrial and domestic circuit protection devices, motors, fans, modular switches, home appliances, air conditioners, electric water heaters, and lighting solutions for various applications.
The company has no debt and pays a dividend of 42.5%.
They are in the production and global distribution of wires and cables like EHV, HT, and LT cables. The company serves both retail and institutional markets and offers engineering, procurement, and construction services.KEI Industries has reported strong profit growth, with a CAGR of 26.1% over the last five years.
Finolex Cables Limited is a leading name in manufacturing electrical and telecommunication cables in India. The company has also ventured into producing FMEG and home appliances.
Over the years, Finolex has established itself as a trusted provider of electrical solutions for both retail and institutional markets and enhanced its strong market presence.
The company is debt-free and has a healthy dividend payout rate of 18.4%.
Open Demat Account and Start Trading!
RR Kabel provides consumer electrical products for residential, commercial, industrial, and infrastructure applications. The company's products include wires and cables such as house wires, industrial wires, and power cables; and FMEG products like fans, lighting, switches, and appliances.
RR Kabel is focusing on expanding its FMEG revenues by manufacturing higher-margin products like switchgear and decorative fans by developing the RR Signature brand for premium offerings.
It has reduced its debt and delivered profit growth of 27.9% CAGR over the past five years.
It is into manufacturing of power cables, conductors, transformers, and other electrical equipment. It serves sectors like utilities, industrial sectors, and infrastructure projects.
It is engaged in manufacturing power cables along with capacitors, conductors, and wires.. It supplies products to power transmission companies, the renewable energy sector, and industrial consumers.
It has also collaborated with Japan’s Furukawa Electric for advanced cable technology. Universal Cables is part of the MP Birla Group which also has businesses in cement, jute, carbide, telecom, and electrical infrastructure.
It focuses on producing telecom cables, power cables, and other technical wires. It caters to telecom, railways, infrastructure, and power, aiming to meet domestic and international demand.
The company has reduced its debt levels and achieved a CAGR of 23.8% in profits.
The company has no debt and pays a dividend of 42.5%.
Open Demat Account and Start Trading!
The cable sector offers robust investment opportunities due to the following reasons:
-
Demographic and Economic Growth
India has nearly 62% of its population within the 15-60 age bracket, most of which have a rising disposable income. This demand directly benefits the cable industry as nuclear families are becoming more and more prevalent.
-
Urbanisation and Government Initiatives
Government initiatives like the National Infrastructure Pipeline and the 'Housing for All' scheme, are set to expand cities and enhance infrastructural development.
This expansion will create a substantial demand for cables required in the power, telecom, and construction sectors.
Governmental spending on infrastructure through projects that aim to electrify rural areas and enhance road networks will improve cable demand.
-
Technological Advancements and Renewable Energy
Digital transformations and ambitious renewable energy targets set by the PM KUSUM program for solar energy are increasing the demand for cables.
Conclusion
Given these dynamics, you can capitalise on sustainable growth and long-term profitability that many of these companies aim to bring about. The cable sector has a compelling opportunity within the broader manufacturing landscape.
Financial Calculators: SWP Calculator | EMI Calculator | SIP Calculator | Compound Interest Calculator | CAGR Calculator | Sukanya Samriddhi Yojana Calculator | Retirement Calculator | Mutual Fund Returns Calculator | EPF Calculator | Inflation Calculator
​​​​​​​
Popular Stocks: ICICI Bank Share Price | HDFC Bank Share Price | CDSL Share Price | UPL Share Price | TCS Share Price | BHEL Share Price | Trident Share Price | IRFC Share Price | Adani Power Share Price