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The stock led sharp declines across the sector, with Polycab India and Havells India plunging up to 8.5% as investors feared heightened competition from Adani Group’s foray into the space.
The sell-off followed Adani Enterprises’ late Wednesday announcement that KCL had completed the incorporation of a new joint venture, Praneetha Ecocables Limited (PEL), with Praneetha Ventures. Both partners will hold a 50% stake in the entity, which will manufacture, market, and distribute metal products, cables, and wires.
Adani’s entry is expected to intensify competition in a market largely dominated by Polycab, Havells, Finolex Cables, and KEI Industries. The move also marks the second major conglomerate expanding into the segment after the Birla Group’s UltraTech Cement announced a similar plan last month, triggering a sell-off in cable and wire stocks at the time.
KEI Industries shares, already under pressure following a 20.6% decline in the past month, have now extended their year-on-year decline to over 14%. However, the stock has still gained more than 150% in the last three years.
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Technical indicators show KEI is trading below all eight key simple moving averages (SMAs), including the 100-day, 150-day, and 200-day SMAs. Its 14-day Relative Strength Index (RSI) stands at 45.9, indicating the stock is neither overbought nor oversold.
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For the quarter ended December 2024, KEI reported a 9.4% year-on-year increase in net profit to Rs 164.8 crore, while net sales climbed nearly 20% to Rs 2,467 crore.
Meanwhile, shares of Adani Enterprises traded higher at Rs 2,330 apiece, as the company continued to expand its footprint across sectors.
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