Equirus on UltraTech's Cables Entry and Whether It's Time to Buy the Dip in Polycab, RR Kabel and KEI
Key Takeaways
- •UltraTech announced its entry into India's wires and cables business in June 2025 as part of a diversification strategy beyond cement.
- •Early commissioning of UltraTech's Gujarat plant pressured shares of established players Polycab, KEI and RR Kabel.
- •Equirus Securities' Manoj Gori does not currently view the share decline as a buying opportunity.
- •Diamond Power's expansion plans and possible additional UltraTech cables capex are flagged as the next major triggers for the sector.
Equirus Securities' Manoj Gori breaks down why UltraTech's early start-up of its Gujarat wires plant spooked shares of Polycab, KEI and RR Kabel — and why he isn't rushing to call it a buying opportunity yet.
UltraTech, the Aditya Birla group's cement flagship, announced its entry into the wires and cables business in June 2025 as part of a broader diversification beyond cement, and the early commissioning of its Gujarat plant has intensified investor concern that a large new competitor with deep pockets could pressure the market share and margins of established players. Polycab, KEI and RR Kabel are among the leading listed incumbents in India's wires and cables industry, a sector that has enjoyed strong demand driven by electrification, infrastructure build-out and real estate activity.
Gori also flags Diamond Power's expansion plans and a possible fresh UltraTech cables capex as the next big triggers for the sector, raising the question of what these developments could mean for valuations from here.
Source: CNBC-TV18
