Indian cables and wires makers drop on UltraTech's entry

Ultratech Cement

27/02/2025 04:16

** Indian cables and wires makers Polycab India POLC.NS, KEI Industries KEIN.NS and Havells India HVEL.NS plunge 13.7%, 10% and 7%, respectively

** UltraTech Cement said it will spend 18 bln rupees ($206.3 mln) to start wires and cables business

** Analysts at J.P. Morgan see ULTC's move as disruptive for the wires and cables industry as it can lead to increased competition

** The development will likely have a material impact on industry leaders' growth and margins beyond FY27 - HSBC

** Cuts price targets on POLC, HVEL and KEIN by 20%, ~7% and 20%

** POLC, HVEL, KEIN rated "buy" on average - data compiled by LSEG

** POLC hits lowest in nearly 11 months, HVEL at lowest level in a year, while KEIN slides an exchange-allowed maximum

** Year-to-date, POLC, HVEL, KEIN down ~21%, ~8% and 14%

($1 = 87.2530 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))