Polycab, KEI: JM Financial sees strong demand for C&W; flag key risks

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.

Shares of cable & wires-related stocks such as Polycab India, KEI Industries and RR Kabel have declined up to 3 per cent thus far in January amid a weak broader market trend.  Data from ACE Equity shows that KEI Industries has shed over 3 per cent, and Polycab India stock has dropped 2.6 per cent. RR Kabel was down 0.6 per cent.  These 3 cable & wires (C&W) stocks are likely to remain in limelight owing to the multiple price hikes taken in the last two months.  Analysts at JM Financial highlight in a note that C&W prices were hiked by 10–15 per cent sequentially in 3Q (versus a 21 per cent QoQ increase in copper prices), and besides price hikes in October/ November 2025, two price hikes were taken in December 2025 and three price hikes in January 2026 so far.  JM Financial in its note said that there has been buoyant demand for C&W driven by demand from the institutional business, and stocking from channel partners in anticipation of price hikes given copper continues to trend up.  LME Copper prices have soared over 38 per cent in the last five months from levels of around $9,700 per metric ton, to a high of $13,387 per metric ton earlier this month.  ALSO READ | Copper surge powers Polycab volumes; brokerages bullish despite margin hit  Analysts caution that channel partners remain wary of incremental stocking since it exposes them to potential risks of inventory losses, and should copper prices correct hereon; that in turn poses a risk to primary off-take for C&W companies.  Another key risk flagged by analysts at JM Financial is price conscious real estate developers are now opting for cheaper brands/ unbranded products due to the sudden rise in C&W prices.  On the earnings front, Polycab India reported a 35 per cent year-on-year (YoY) growth in net profit at ₹620 crore for Q3FY26 backed by 46 per cent YoY jump in revenue at ₹7,640 crore.  KEI Industries is scheduled to announce results tomorrow January 21. RR Kabel is yet to announce the date.  Given this background, here's how these 3 C&W stocks are placed on the charts: 

Polycab India

Current Market Price: ₹7,240 

 

 

  Polycab stock is seen trading below the - 50-day moving average (50-DMA) and the 100-DMA for the fourth straight trading day. These averages stand at ₹7,486 and ₹7,469, respectively.  The Polycab stock shows that the 200-DMA stands at 6,837, and the stock has been holding above the same since the breakout on June 23, 2025. 

KEI Industries

Current Market Price: ₹4,232 

 

    KEI stock chart shows that it is testing the 50-DMA at ₹4,233; below which stands the 100-DMA at ₹4,164, and the 200-DMA at 3,849 levels.

  RR Kabel

Current Market Price: ₹1,417 

 

     RR Kabel is seen trading below the 50-DMA, which stands at ₹1,431, after a gap of nearly 3 months. The stock last traded below the 50-DMA on October 24, 2025. The 1000- and 200-DMAs stand at ₹1,341 and ₹1,286, respectively.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.