Top 5 Wire Manufacturing Stocks Powering India’s Growth

January 7, 2025

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1.Polycab India Limited: Established in 1968 and headquartered in Mumbai, Polycab is India’s largest manufacturer of wires and cables, holding approximately 25% to 26% market share in the sector. The company offers a diverse range of products, including electric fans, LED lighting, switches, and solar products.

Market Cap ₹ 1,07,234 Cr.
Current Price ₹ 7,129
High / Low ₹ 7,607 / 3,801
Stock P/E 59.8
Book Value ₹ 571
Dividend Yield 0.43 %
ROCE 31.3 %
ROE2 3.2 %
Face Value ₹ 10.0
Industry PE 41.4
Debt to equity 0.02
EPS ₹ 119
Promoter holding 63.1 %
Pledged percentage 0.00 %
Free Cash Flow ₹ 438 Cr.
ROCE 31.3 %
Current liabilities ₹ 4,685 Cr.
Total Assets ₹ 13,711 Cr.
PBT Ann ₹ 2,359 Cr.
Volume 2,83,196

Pros

Company is almost debt free.
Company has delivered good profit growth of 28.1% CAGR over last 5 years
Company has been maintaining a healthy dividend payout of 24.0%

Cons

Stock is trading at 12.5 times its book value
Promoter holding has decreased over last quarter: -1.96%

2.KEI Industries Limited: Founded in 1968 and based in New Delhi, KEI Industries specializes in manufacturing stainless steel wires, cables, high-tension power cables, and rubber cables. The company has a strong presence in both domestic and international markets.

Market Cap ₹ 41,149 Cr.
Current Price ₹ 4,306
High / Low ₹ 5,040 / 2,822
Stock P/E 65.9
Book Value ₹ 383
Dividend Yield 0.08 %
ROCE 27.2 %
ROE 20.2 %
Face Value ₹ 2.00
Industry PE 41.4
Debt to equity 0.10
EPS ₹ 69.2
Promoter holding 35.0 %
Pledged percentage 0.00 %
Free Cash Flow ₹ 211 Cr.
ROCE 27.2 %
Current liabilities ₹ 1,293 Cr.
Total Assets ₹ 4,943 Cr.
PBT Ann ₹ 781 Cr.
Volume 2,30,479

Pros

Company has delivered good profit growth of 26.1% CAGR over last 5 years

Cons

Stock is trading at 11.2 times its book value
Promoter holding has decreased over last quarter: -2.06%

3.Finolex Cables Limited: Established in 1958 and headquartered in Pune, Finolex is one of India’s largest manufacturers of electrical and telecommunication cables. Their product portfolio includes a diverse range of electrical wires and cables catering to various sectors.

Market Cap₹ 17,127 Cr.
Current Price₹ 1,120
High / Low₹ 1,700 / 831
Stock P/E31.6
Book Value₹ 285
Dividend Yield0.72 %
ROCE18.7 %
ROE14.2 %
Face Value₹ 2.00
Industry PE41.4
Debt to equity0.00
EPS₹ 35.5
Promoter holding35.9 %
Pledged percentage0.00 %
Free Cash Flow₹ 358 Cr.
ROCE18.7 %
Current liabilities₹ 515 Cr.
Total Assets₹ 4,970 Cr.
PBT Ann₹ 753 Cr.
Volume1,78,704

Pros

Company is almost debt free.
Company has been maintaining a healthy dividend payout of 21.8%
Company’s working capital requirements have reduced from 116 days to 68.3 days

Cons

Company has a low return on equity of 13.9% over last 3 years.
Earnings include an other income of Rs.243 Cr.

4.Havells India Limited: Founded in 1958 in Delhi, Havells is a prominent player in the Fast-Moving Electrical Goods (FMEG) sector. The company manufactures a wide array of products, including electrical wires, cables, home appliances, and lighting solutions.

Market Cap ₹ 1,02,539 Cr.
Current Price ₹ 1,636
High / Low ₹ 2,106 / 1,280
Stock P/E 72.7
Book Value ₹ 124
Dividend Yield 0.55 %
ROCE 24.4 %
ROE 18.0 %
Face Value ₹ 1.00
Industry PE 73.2
Debt to equity 0.04
EPS ₹ 22.5
Promoter holding 59.4 %
Pledged percentage 0.00 %
Free Cash Flow ₹ 1,191 Cr.
ROCE 24.4 %
Current liabilities ₹ 4,317 Cr.
Total Assets ₹ 12,843 Cr.
PBT Ann ₹ 1,707 Cr.
Volume 4,51,914

Pros

Company is almost debt free.
Company has been maintaining a healthy dividend payout of 42.5%
Company’s working capital requirements have reduced from 16.7 days to 12.6 days

Cons

Stock is trading at 13.2 times its book value

5.RR Kabel Limited: Part of the RR Global group, RR Kabel is known for its extensive range of wire and cable products. The company has a significant presence in both domestic and international markets, offering products that adhere to various global standards