KEI's Q2FY27 EBITDA was in line with estimates, although the EPC business reported a loss during the quarter and C&W margins were below estimates, said analysts at Motilal Oswal.
As of Tuesday, Polycab, KEI Industries, R R Kabel and Quadrant Future Tek were down up to 24% from their respective 52-week highs touched in September.
The index has witnessed a sharper fall in September compared to the Nifty 50, which declined 6 per cent, and the Nifty Smallcap 250 that slipped 3.5 per cent.
Mayank Jain of Share.Market by PhonePe flags key support and resistance levels for wires & cables stocks - Polycab, Havells India and KEI amid market correction post UltraTech's 'Ultravolt' launch.
In the past six months, the market price of RR Kabel zoomed 60%, while Polycab India and KEI soared 41% and 38%, respectively, as against a 9% decline in the BSE Sensex.
Hindalco, KEI Industries, Polycab, Apollo Hospital, Anand Rathi Wealth, GE Vernova T&D, Manappuram Finance, Navin Flurochemicals, Torrent Pharma and J B Chemicals hit fresh life-time highs on Monday.
Infrastructure development, housing growth, electrification and the ongoing shift towards organized and compliant products continue to support the demand, said RR Kabel.
After completing the Sanand project and the strong demand in domestic and overseas markets, the KEI management is hopeful to grow more than 20% CAGR in next 3 to 4 years.
Analysts at JM Financial seen strong C&W demand from institutional players; but caution that a correction in copper prices could pose a risk to primary off-take for these companies.
The Cables & Wires (C&W) segment, which is KEI Industries' growth engine, saw revenues rise 23 per cent Y-o-Y, marking a six-year compound annual growth rate (CAGR) of 17 per cent.
Rising trend of energy consumption coupled with ongoing urbanisation and robust expansion of data centres and electric vehicles (EVs), the future growth trajectory of the C&W sector looks promising
