Polycab, KEI Industries, Havells: Cable stocks crash up to 14% as Adani forays into segment

Shares of select wires and cable companies including Polycab India, Havells India, RR Kabel and KEI Industries tumbled as much as 9 per cent during the trading session on Thursday after the Adani Group's flagship firm Adani Enterprises Ltd eyes its entry in the segment, which may dent the prospects for the existing players.

The flagship company of the Gautam Adani-led conglomerate announced incorporation of a joint venture (JV) through its wholly-owned subsidiary Kutch Copper Ltd with Praneetha Ventures naming the new entity as Praneetha Ecocables Ltd in the shareholding ratio of 50:50.

The newly formed JV will foray into manufacturing, marketing, distribution, buying and selling of metal products, cables and wires, said the exchange filing by the Gautam Adani-led firm. Recently, Kutch Copper had also announced that it had joined the International Copper Association as its newest member.

Following the announcement, shares of leading wires and cable (W&C) player took a major hit, which were already struggling to recover over a month since Aditya Birla Group's UltraTech Cement also announced its plans to enter the cable arena in February 2025.

Shares of KEI Industries cracked more than 14.30 per cent to Rs 2,809.85 on Thursday, with its market capitalization slipping below Rs 28,000 crore. The stock had settled at Rs 3279.45 on Wednesday. Similarly, Polycab India Ltd shares cracked about 9.6 per cent to Rs 4,920 in the early trade, with a total valuation below Rs 75,000 crore. The ended at Rs 5441.75 in the previous session.

Shares of Havells India Ltd tumbled more than 5.35 per cent to Rs 1,473.65 during the session, with its total valuations slipping below Rs 95,000 crore mark. The stock ended the previous session at Rs 1557.40. RR Kabel also declined more than 4.75 per cent to Rs 872.80 in the early trade, with its valuations slipping below Rs 10,000 crore mark.

Among other stocks, Finolex Cables crashed more than 4.75 per cent to Rs 827 on Thursday, with its valuation slipping below Rs 12,500 crore mark. Dynamic Cables was down 4.3 per cent to Rs 551.30, while Plaza Wire declined more than 2.25 per cent to Rs 55.11 during the day.