Street View-UltraTech to have 'modest impact' on India's cables and wires sector

Ultratech Cement

27/02/2025 05:24

** India's UltraTech Cement ULTC.NS will spend 18 billion rupees ($206.54 million) to start up a wires and cables business, deepening its foothold in the construction materials business, the company said on Tuesday

** Shares down 4.5% at 10,470.75 rupees

CONCERNS OVER CAPITAL ALLOCATION, DEBT REDUCTION

** Nuvama Research (maintains "hold", PT: 11,574 rupees) says ULTC's entry into wires and cables segment is expected to have only modest impact, contributing less than 5% to the total industry

** Macquarie Research (maintain "outperform", PT: 12,961 rupees) said the foray raises uncertainty over ULTC's capital allocation and debt reduction plans

** Jefferies (maintain "buy", PT: 13,265 rupees) says ULTC's revenue potential can be around 5%-7% of wires and cables industry by FY29, adding that they foresee lower competitive impact for established players

** Ambit Capital (maintain "sell", PT: 9,500 rupees), says the diversification is a capital allocation risk

($1 = 87.1500 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru)

 ((AshnaTeresa.Britto@thomsonreuters.com; +91 8078332441))