Cables Archives - Page 3 of 3

About the Cable Sector

Cables or wires are an extremely important component forin helping the distribution mechanism of a growing power infrastructure in India. Modern cables are of various types, from basic power cables to more complex ones like control cables, instrumentation cables, optical fibre cables, etc.

Digitisation, industrialisation and modernisation of traditional sectors like agriculture help drive the demand for cables. Specifically, smart city infrastructure, the Internet of Things, 5G adoption, electric vehicles, etc. will act as major demand sources.

Future Outlook of the Cable Sector in India

The demand for wires and cables is surging worldwide, with a projected compound annual growth rate (CAGR) of 6.45%. This translates to a market size expected to reach a staggering USD 332.65 billion by 2026, a significant jump from USD 201.76 billion in 2018. This rapid growth reflects the country’s booming power and infrastructure sectors, particularly in the high-voltage (HV) and extra-high-voltage (EHV) cable segments.

Things To Consider Before Investing in the Cable Sector

Target Growth Engines: Investigate projected growth rates for global and Indian cable markets. Prioritise companies serving high-growth sub-sectors. Remember, external factors like the costs of raw materials such as rubber, copper, aluminium, thermoplastic, thermosets, and other plastics can impact profitability in the cables sector.
Financial Fitness: Dive into the financial health of individual companies. Scrutinise profitability, cash flow, and capital efficiency to assess their operational strength.
Competitive Landscape: Map the major players in the Indian cable market and their market shares. Prioritise established brands with proven track records, but stay alert to potential disruptors.
Align with Your Goals: Consider your investment timeframe and objectives. Long-term capital appreciation requires companies with strong market positions and long-term growth potential.

How To Invest in Cable Sector Stocks?

Investing in cable sector stocks via Angel One is easy. Simply follow these steps:

Log in to your Angel One account.
Click on the search icon and look for your desired cable sector stock.
Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
To complete your transaction, click on the ‘Buy’ button.

If you don’t have a Demat account with Angel One, you can open one for free online within minutes.

FAQs

What are Cable sector stocks?

Cable sector stocks represent companies involved in the manufacturing and distribution of wires and cables used across various industries. This includes power cables, fibre optic cables, automotive cables, and speciality cables for niche applications.

What are the top stocks from the Cable sector in terms of market cap?

Polycab India, Finolex Cables, KEI Industries, RR Kabel, etc., are some of the biggest cable sector companies in India with publicly traded stocks.

How to evaluate Cable sector stocks?

You may assess stocks based on financial health through metrics like profitability, debt-to-equity ratio, and operational efficiency. You can also use industrial sector KPIs like throughput, first-pass yield, on-time project delivery, capacity utilisation, etc., to assess cable sector stocks.

Why should you invest in Cable stocks?

The cable industry is set to increase at a CAGR of 6.45% globally. In India, the sector is set to grow at a CAGR of 15%. Hence, you may consider investing in stocks of a growing sector.

Which are the best Cable sector stocks to invest in?

With a 5-year CAGR of nearly 60% as of January 30, 2024, Diamond Power is the best cable sector company. As such, the top cables sector stock can be selected based on various factors like cash richness, market size, growth rate, etc. Do your own research before deciding which stock is the best for your investment strategy.