HSBC reduces the targets of 4 stocks after the entry of ultrate in wires and cables. Time to cut damage?

The HSBC on Thursday reduced target prices for India’s leading wire and cable companies by 23%, citing competitive threats from the surprising threat of ultraitech cement in the ultraitech cement industry. The brokerage said that the ultrac was Rs. An investment of Rs 1,800 crore can be a “industry-fragmenting” event, which is the weight of long-term earnings for people.

Policab India, KE Industries and RR Kabel suffered repetitions, in which HSBC reduced their target price by 20-23%. The target of Polic AB is Rs 7,840 to Rs 6,250, KE Industries to Rs 4,500 to Rs. 3,450 and RR Kabel from Rs 1,600 to Rs. Was reduced to 1,260. Heavels India saw a decline of 7%, reducing its target from Rs 1,850 to Rs 1,730. Brokerage maintained its ‘buy’ ratings on Polic ABB, Havels and RR Kabel but kept Kei on ‘hold’.

Ultrate, India’s largest cement manufacturer, announced the entry into the wire and cables segment by December 2026 aiming to give plant commission in Gujarat. HSBC said that its sister company Hindalco’s aluminum and copper business, established ultratech relationships and supply chain benefits in the construction sector – make it formed rivals.

In Thursday’s trade, concerns about rising competition weighs on other wire and cable companies, with Havels India and Polic ABB India disturbing 6.3% and 18.8% respectively. The KE Industries and RR Kabal saw an EP decline by dipping 21% and 20% respectively. UltraTech fell 5% to its lowest level after June, as investors questioned the company’s capital allocation strategy.

HSBC said it expected that UltraTech will get about 5% market shares through the financial year 32, producing Rs 10,000 crore in revenue, with the largest impact on low-voltage building wires. It now predicts CGR in F Fing Profit for pure-play wire and cable companies that the fiscal year is reduced by 1.6-2.0%, while Havels can see 1% hit.

UltraTech’s entry comes at a time when the industry is close to the top of the expansion cycle of its capacity, concerns about prices pressure and margin compression. HSBC research reflects the point of view that current players can struggle to defend market stock without sacrificing profitability.

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