Best Cable Stocks to Buy in India – List of Top 10 Cable Industry Shares of 2022Last Updated Date: May 29, 2022
A cable is essentially a bundle of encased thick wires. Their purpose is to carry electrical currents. This capability of cables lends its wide application across industries.
From manufacturing to telecom, railways to defense – cables are required practically everywhere. This makes the cabling industry a sector on its own. There are several listed cable companies in India today.
With the focus on industrialization and infrastructure building in the country, the cable sector is expected to boom.
In this article, we have provided all the details so you can select the best cable stocks to buy.
Know about the Cable Sector in India
India is home to several top cable companies. In India, this sector comprises companies of both organized and unorganized spaces.
The domestic value of this sector is around Rs. 500 Bn. It alone includes around 45% of the electrical industry.
Power cable, building wires, control and instrumentation cables, telecom cables, optical fiber cables, etc; all comprise the cable sector. There are several growth drivers for this sector in India today.
Rapid urbanization, infrastructural development, and the make-in-India mission are strong growth drivers. These factors make the cable sector an attractive space for investors.
Several companies are listed within the organized segment and are now part of our list of top cable sector stocks to buy.
Top 10 Cable companies in India
Check out the Cable Share Price & Ranking of Best Cable Shares to buy Today or Tomorrow or for Long Term –
We have taken the market capitalization of listed cable companies as the basis for our analysis. On this basis, we have listed the best cable shares in India today.
Apart from the top 10 cable stocks, we have also added 5 cable companies to our ‘honorable mentions’ category. Companies from the large-cap, mid-cap, and small-cap are featured in our list of the top cable shares to buy.
Market capitalization is the best indicator to gauge a listed stock’s size and price value. A simple calculation derives market capitalization. We shall now discuss each one of these stocks in greater detail.
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Polycab India – Best Semiconductor Stocks in India
Ranked at the top of the list of best semiconductor stocks in India is Polycab India Limited. 1996 is the year of incorporation of the Company. It primarily manufactures cables and wires.
The Company also manufactures allied products such as uPVC conduits, lugs, and glands. Its wires and cables have broad applications.
The industries within which they are used include chemicals, consumer durables, defense, energy, manufacturing, etc.
It also manufactures consumer electronic products such as fans, lights, switches, inverters, etc. The Company has 25 manufacturing plants. They are located in Gujarat, Maharashtra, Uttarakhand, Daman, and Diu.
It also has two joint ventures with Techno and Trafigura.
All its products have Indian and international certifications. These include ISO 9001, ISO 14001, OHSAS 18001, etc.
Apart from domestic sales, the Company also exports its products to over 55 countries. It has an annual revenue of Rs.89,625 Mn.
Polycab India is a large-cap investment company with a market cap of Rs.3,70,63.30 crores. It is trading at a share price today of more than Rs. 2474.
Why invest in Polycab India stocks?
- It has recently entered the expanding consumer electronics space. This has widened the base of the Company significantly.
- It has one of the broadest distribution networks, with more than 4100 distributors.
- It has a 23% market share, giving it a dominant position amongst its peers in the cable industry.
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Sterlite Technologies – Cable Stocks in India
Sterlite Technologies Limited is coming in the second position in the list of best cable stocks in India. 1988 is the year of establishment of the Company. The Company is solution-driven.
Its focus is on providing fiber deployment solutions, FTTx access solutions, and network modernization solutions to its clients. Its annual revenue stands at around Rs.5,000 crores.
The Company’s market capitalization stands at over Rs.1,08,71.10 crores. Its current share price is around Rs.273.
Why invest in Sterlite Technologies stocks?
- It has 636 filed and granted patents. This gives it a monopolistic position for several of its products.
- Its primary focus is on innovation in new-age tech-related cablings, which gives it an edge over all its industry peers.
- The company has a strong balance sheet which attracts all types of Investors.
KEI Industries – Top Cable Sector Stocks
Third, in the list of top cable sector stocks to buy is KEI Industries Limited. 1968 is when it began its operations. It started its business by manufacturing house wiring rubber cables. Today it has an entire bouquet of wire and cables.
These include extra-high-voltage, medium voltage, and low voltage power cables. It provides end-to-end cabling and wiring solutions to both retail and institutional clients.
Retail business share is 34%, Institutional share is 51%, and exports at 15%. Its headquarters are in Delhi. The Company operates through 5 manufacturing plants.
It distributes its products through 5000 channel partners, exporting to 45 countries. It has 38 branches and 21 warehouses. KEI Industries has an annual revenue of Rs. 4181 crores.
KEI Industries has a market cap of Rs.101,92.20 crores. Its share price is currently trading at around Rs.1131.
Why invest in KEI Industries stocks?
The share of KEI Industries can be a profitable one for investors due to the following reasons:
- The Company is capitalizing on greenfield and brownfield expansion projects to expand its facilities and product portfolio.
- It has a considerable market share of 12% in the institutional segment. This puts them in a commanding position.
- KEI Industries has a nearly 12% net profit margin. This is considered relatively high as per industry standards.
Finolex Cables – Top Cable Companies in India
Finolex Cables has been an established company since pre-independence times, making it one of the top cable companies in India.
1945 is the year of establishment of the Company in Pune by the Chabbria brothers.
The Company began its business with PVC insulated cables for the automobile industry. Today, it has an extensive product portfolio of various types of cables.
The Company also manufactures switches, lights, fans, and water heaters. It has obtained ISO 9001 and 14001 certifications for its products.
The Company operates through 4 manufacturing plants, located across Pune, Roorkee, and Goa. It has an annual revenue of Rs.26 billion.
The Company has a market capitalization of Rs. 80,98.10 crores. Its cable share price is around Rs.530.
Why invest in Finolex Cables stocks?
- It is a debt-free company. This is a scarce find in companies and indicates superior financial stability and strong fundamental analysis.
- Finolex cables have been an innovative leader from the front – first in the country for several products such as auto cables, multi-strand wires, aerial cables, etc.
- It has an outstanding 22% market share.
- The Company has an Rs. 200 crores planned Capex over the next 2 years to expand its manufacturing base.
Precision Wire India – Top Cable Stocks in India
Mahindra Mehta and their family and Atlas Wires formed Precision Wires India Limited. It has an installed capacity of 45,000 metric tonnes per annum.
It has a comprehensive product portfolio. Its products include enameled round and rectangular copper winding wires, CTC, PICC, etc. Its manufacturing facilities are located at Silvassa. It has a long list of prestigious clients.
These include big corporate names such as BHEL, Bosch, Cummins, Emerson, Godrej, etc. Precision Wire India is the largest manufacturer of winding wires in the South Asian Region.
This makes it one of the top cable stocks in India. Its annual revenue is Rs.1700 crores.
Precision Wires is a small-cap company with a market cap of Rs.8,55.70 crores. Its cables share price is low at around Rs.74. However, this stock can be a good buy for investors due to the following:
- It has an excellent return on equity of more than 16%. This indicates it is a profitable share for investors.
- It has consistently clocked double-digit growth of more than 12% in its revenue.
- Its stock has grown nearly 125% over the last year. This has significantly out beaten the industry and the small-cap investment segment at large.
Universal Cables – Top 10 Cable Stocks
Universal Cables Ltd takes the sixth position in India’s top 10 cable stocks list. The Universal Cables is part of the MP Birla group of companies. 1962 is the year of incorporation of the Company.
Its primary business focus is the manufacturing of power cables. Its product portfolio includes extra-high and medium voltage cables, control and instrumentation cables, power capacitors, relay panels, etc.
It has 3 different types of manufacturing plants. These include the EHV cable plant, PLCV plant, and Capacitor plant. Its annual revenue is nearly Rs. 1300 crores.
A small-cap company, Universal Cables, has a market cap of Rs.607.50 crores. Its share price trades at around Rs.174.
Why invest in Universal Cables Ltd stocks?
Universal Cables has a good outlook for investors due to the following:
- It has several joint ventures, including the most recent one with a Japanese company. This makes this Company a complete EPC solution provider for the cabling industry.
- The Company has recorded an impressive growth of 63.97% in its last QoQ revenue.
- It has an extensive equity research and development department. It even has recognition from the Department of Scientific and Industrial Research of the Government of India.
Salzer Electronics Ltd – Cable Shares in India
Salzer Electronics Limited is a cable and wires manufacturing Company. 1985 is the establishment year of the country.
Its headquarters are located in Coimbatore, Tamil Nadu. Its product portfolio includes cable channels, electrical relays, switches, switch plates, terminal connectors, etc. It has 5 manufacturing facilities.
Apart from domestic sales, it also exports its products globally. It is one of the largest exporters of cable channels. This makes it one of the best cable stocks to buy.
It has an annual revenue of approximately Rs.50 crores. Salzer Electronics is a small-cap company with a market cap of Rs.385.20 crores. Its cable shares in India trade around Rs.240.
Why invest in Salzer Electronics Ltd stocks?
- It has a marketing tie-up with L&T for its range of products. This provides an almost assured market for its products
- The Company has consistently achieved a high growth rate of around 15% over the last 10 years
- Salzer has world-class, state of the art manufacturing technical analysis such as TQM, TPM, Six Sigma, etc.
- It has shown a high price growth of more than 80% over the last year for investors.
Birla Cable – Cable Companies in India
The following list of top cable companies in India is Birla Cable Limited. It was earlier known as Birla Ericsson Optical Limited. 1992 is the establishment year of the Company.
It has a comprehensive portfolio of copper and fiber optic cables. Its product line primarily includes three types of cables. Fiber optic cables, specialty cables, and telecom fiber accessories.
Its manufacturing plant is located at Rewa. The Company also has extensive research and development set up in its facility. It has a sale agreement with M/s AFL Telecommunications. Its annual revenue is around Rs. 330 crores.
Birla Capital has a market cap of Rs. 318.40 crores. Its share price is just over Rs.100.
Why invest in Birla Cable stocks?
The reasons that make it amongst the top cable stocks to buy are:
- Its cables are used in the fast-growing telecommunications industry. This gives it a high potential for growth for investment.
- Birla Cable is in an expansion phase, with its focus on the FTTx segment.
- The government mission of BharatNet and the introduction of 5G networks will boost the growth of Birla Cable.
Paramount Communications – Best Cable Companies in India
Paramount Communications Ltd is one of the best cable companies in India. It is part of the Paramount group of companies.
Its cable products include HV and LV power cables, optical fiber cables, telecom cables, railway cables, and specialized cables.
The Company’s products are used in various industries such as power, telecom, IT, railways, etc. It has two world-class manufacturing facilities. One is located in Rajasthan and the other in Haryana.
It sells its manufactured products both domestically and internationally to over 15 countries. Its annual revenue is around Rs. 6,000 Mn.
Paramount Communications Ltd is a small-cap company with a market cap of Rs. 299.80 crores. Its share price is low, around Rs.15.
Why invest in Paramount Communications Ltd stocks?
- With a low share price of Rs.15, the shares of Paramount Communications Ltd are relatively undervalued. This means there is significant scope for an increase in its share price.
- It has over 500+ institutional clients. This indicates its broad and diversified market base.
- It is the largest supplier of the government BharatNet mission.
Ultracab – Top 10 Cable Shares to Buy
Ultra Cab (India) Limited is finishing our list of top 10 cable shares to buy is Ultra Cab (India) Limited. The Company has more than 22 years of experience. It began its business by manufacturing PVC wires and cables.
Today it manufactures several specialty products such as house wires, submersible flat cables, industrial cables, instrumentation cables, auto cables, etc.
Its manufacturing facilities are located in Gujarat. It has several critical certifications for its products. Its annual revenue is Rs. 70 crores.
The Company has a market cap of Rs.227.70 crores. Its share trades at around Rs.180.
Why invest in Ultracab stocks?
- It has a trademark in thin wall cables. This gives it a monopolistic position in the share market for this product line
- It is in the expansion phase – ready to launch high tension cables in the next couple of years
- It nearly doubled its net profit over the last year.
Dynamic Cables – Cable Sector Stocks to Buy
The first Company in our honorable mentions list of cable sector stocks to buy is Dynamic Cables Limited. It has over 30 years of experience in the wires and cables industry.
It has three manufacturing plants, all located in Rajasthan. Its products include conductor, power cables, bunched cables, control cables, concentric cables, etc. It exports its products to over 40 countries.
Dynamic Cables has a market cap of Rs. 208.80 crores. It has given investors a good share price growth of 189%. Today its shares trade at Rs.95.
It is likely to benefit significantly from the Make in India mission and increase in the power and energy sector.
Aksh Opti fiber – Cable Companies Stocks to Buy
Aksh Opti fiber Limited is the next in our honorable mentions category of cable companies’ stocks to buy. 1994 is its year of incorporation. As the name suggests, the Company manufactures optical fiber and optical fiber cables.
It was listed on the Indian stock exchanges via an IPO in 2000. Akash has two manufacturing plants.
One dedicated to fiber optic cables is located at Bhiwandi, Rajasthan, and the other for Fibre Reinforced plastic rods is located at Reengus, Rajasthan. Aksh Opti fiber has a market cap of 204.10 crores. Its share is reasonably priced at Rs.13.
It operates in the upcoming optical fiber segment. It has obtained world-class unique machinery from overseas, making it a strong player in this segment.
Surana Telecom – Semiconductor Companies’ Shares to Buy
Next in the list of honorable mentions of semiconductor companies’ shares to buy is Surana Telecom Ltd. Surana Telecom began its cable manufacturing business in 1992. This has now become its primary business focus.
The Company manufactures jelly-filled telephone cables. It has also expanded its product line to optical fiber cables. It has two manufacturing facilities. One at Hyderabad and one at Goa.
Its total production capacity is 2.9 million CKM of cables. Its annual revenue is Rs.20 crores. Surana Telecom is a small-cap company with a market cap of Rs.201.70 crores. Its share price is around Rs.14.
This Company has kept up with industry developments by updating its product portfolio regularly. This innovation aspect of the Company makes it a good buy for investors.
Torrent Cables – Cable Companies in India
Torrent Cables is a cable manufacturing company with its headquarters in Ahmedabad. 1991 is its establishment year.
Its product portfolio primarily comprises HV power cables and 132Kv XLPE cables. This Company has the unique USP of being one of the first cable companies in India to get ISO 9001:2000 certification.
It has a market capitalization of Rs. One thousand four hundred four crores and its share price traded at around Rs.163.
RPG Cables – Cable Stocks in India
The last on our list of cable stocks in India is RPG Cables Limited. RPG Cables is a division of KEC International Limited.
It is one of the oldest companies, established in 1959. It manufactures power cables; telecom cables and provides turnkey solutions for industrial cabling needs.
It has two manufacturing facilities, one at Vadodara and one at Mysore.
It exports its products to over 50 countries, apart from domestic sales. RPG Cables has a market cap of Rs.114.60 crores, and its share price in the market is around Rs.27.
How to find cable stocks for trading?
Now that you are armed with all the information to trade in cable stocks, you can begin your investing journey. In the interest of diversification, though, you may want to narrow down this list of 15 stocks to a few handpicked ones.
Next, we will detail specific parameters that you must look into while finding cable stocks for trading:
Financial stability: Stocks financial credentials are important to assess financial stability and future growth. Download and study both the financial statements and audit reports of the selected stock before making your investment.
P/E ratio: The key factor for any stock is its trading price. Ensuring that the stock is not overvalued when you buy it is important. Thus, you can analyze its P/E ratio vis-à-vis the industry and its peers to gauge this.
Relevant news and macro factors: There are constant policy changes that affect the cable sector. Be sure to read news articles and be up to date with this. In this way, you can correctly select stocks that will benefit from policy changes.
How to invest in cable sector stocks?
All listed shares here are only traded in dematerialized form. Therefore, you need to have a Demat account to invest in cable stocks. The Demat account can be opened with any broking house or discount brokerage firm.
Furthermore, you also need to have an active trading account with the broking house. For opening accounts, you will need to submit KYC documentation to the broker. Once the account is opened, it will be linked to one of your bank accounts.
The broker will have a trading platform. This can generally be accessed through your laptop/computer or a mobile trading app.
With the login credentials, you can access your Demat account, actively trade in your chosen stocks, and view your portfolio.
Top Cable Companies in India – Conclusion
The cable sector in India is one of the sectors whose products have the widest end-use. Hence, its utility is extensive, from infrastructure and industry to power and telecom.
With India moving rapidly towards fast urbanization and industrialization, the cable industry grows more. From time to time, the government releases several benefits and promotional measures to boost this sector.
We have thus summarised for you the top cable companies in India. By investing in these, you can capitalize on the fast-paced growth expected of this flourishing cable sector.
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