KEI Industries, Polycab, Havells Share Prices Go Haywire After UltraTech's Cables Entry Plan

Shares of Polycab India Ltd., KEI Industries Ltd., R R Kabel Ltd., and Havells India Ltd. took a sharp hit during early trade on Thursday. This comes after Ultratech Cements Ltd. announced plans to foray into the cables and wires business.

The Aditya Birla Group company announced plans to enter into the cables and wires business, as part of its strategy of becoming a comprehensive 'Building Solutions' provider.

Macquarie expects the company's entry to have modest impact on the industry. This will also create further healthy competition among organised players, according to the brokerage. Macquarie retained its bullish stance on KEI, Polycab and Havells. The enhancement of the capex plan by UltraTech is the key monitorable, according to the brokerage.

Among key cable and wire players, KEI Industries shares saw the sharpest fall, as the stock fell as much as 20% during the day to Rs 3,038.3 apiece on the NSE. It was trading 17.88% lower at Rs 3,118.7 apiece, compared to a 0.4% decline in the benchmark Nifty 50 as of 10:19 a.m.

The stock has fallen 4.04% in the last 12 months. Total traded volume so far in the day stood at 11 times its 30-day average. The relative strength index was at 46.05.

Fourteen of the 18 analysts tracking the company have a 'buy' rating on the stock and four recommend a 'hold', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 4,740.4, implying an upside of 55.4%.

Polycab stock fell as much as 15% to Rs 4,900 apiece on the NSE, compared to a 0.01% decline in the benchmark Nifty 50 as of 10:34 a.m.

It has risen 4.13% in the last 12 months. The total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index was at 40.3.

Twenty five of the 31 analysts tracking the company have a 'buy' rating on the stock, two recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 7,380.5, implying an upside of 48.2%.

Havells stock fell as much as 9.41% during the day to Rs 1,402.2 apiece on the NSE. It was trading 7.69% lower at Rs 1,428.9 apiece, compared to a 0.08% decline in the benchmark Nifty 50 as of 10:26 a.m.

It has risen 0.07% in the last 12 months. The total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 44.7.

Twenty seven of the 41 analysts tracking the company have a 'buy' rating on the stock, eight recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 1,825.03, implying an upside of 26.6%.