Cables Stocks

Cables or wires are an extremely important component forin helping the distribution mechanism of a growing power infrastructure in India. Modern cables are of various types, from basic power cables to more complex ones like control cables, instrumentation cables, optical fibre cables, etc.

Digitisation, industrialisation and modernisation of traditional sectors like agriculture help drive the demand for cables. Specifically, smart city infrastructure, the Internet of Things, 5G adoption, electric vehicles, etc. will act as major demand sources.

The demand for wires and cables is surging worldwide, with a projected compound annual growth rate (CAGR) of 6.45%. This translates to a market size expected to reach a staggering USD 332.65 billion by 2026, a significant jump from USD 201.76 billion in 2018. This rapid growth reflects the country’s booming power and infrastructure sectors, particularly in the high-voltage (HV) and extra-high-voltage (EHV) cable segments.

1. Target Growth Engines: Investigate projected growth rates for global and Indian cable markets. Prioritise companies serving high-growth sub-sectors. Remember, external factors like the costs of raw materials such as rubber, copper, aluminium, thermoplastic, thermosets, and other plastics can impact profitability in the cables sector.
2. Financial Fitness: Dive into the financial health of individual companies. Scrutinise profitability, cash flow, and capital efficiency to assess their operational strength.
3. Competitive Landscape: Map the major players in the Indian cable market and their market shares. Prioritise established brands with proven track records, but stay alert to potential disruptors.
4. Align with Your Goals: Consider your investment timeframe and objectives. Long-term capital appreciation requires companies with strong market positions and long-term growth potential.

Investing in cable sector stocks via Angel One is easy. Simply follow these steps:

1. Log in to your Angel One account.
2. Click on the search icon and look for your desired cable sector stock.
3. Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
4. To complete your transaction, click on the ‘Buy’ button.

If you don’t have a Demat account with Angel One, you can open one for free online within minutes.