GAGA Share Market News

[hfe_template id='11223'] [ad_1] Synopsis First it was the paint industry, and this week it was the turn of stocks of the wires & cable sector to suffer cuts because the heavyweight Aditya Vikram Birla Group announced its entry into the industry. The stocks of wires & cable companies saw dramatic drops as soon as the announcement was made. Is this an over-reaction, similar to what the street witnessed when the AV Birla Group recently entered the paint industry? Probably not. There is a big difference between the paint and the wires & cable industries, even though their products are related to home building. The investment to be made by the AV Birla Group company UltraTech Cement to enter the wires & cable business is just Rs. 1,800 crore. The impact of that announcement: Over Rs. 40,000 crore of market capitalisation wiped out for both the new entrant and existing companies. In just one trading session. Is this investment of Rs. 1,800 crore so powerful th...

[hfe_template id='11223'] [ad_1] Aditya Birla Group company UltraTech Cement’s surprise foray into the Rs 80,000 crore wires and cables (W&C) segment has sent shockwaves through the industry, mirroring the disruption its parent company, Grasim Industries, has already triggered in the paints sector with Birla Opus. Shares of wires and cables manufacturers Polycab, KEI Industries and Havells fell up to 20% on Thursday as investors fear that UltraTech’s Rs 1,800 crore capex can lead to de-rating and margin pressure for existing players. Polycab shares nosedived 16%, while KEI Industries plunged 20%, Havells India dropped 9%, and RR Kabel followed suit with a 13% slide. UltraTech’s move has raised pressing questions: Will the Aditya Birla Group replicate its aggressive playbook and force a sector-wide de-rating, much like it did with Asian Paints and Berger Paints? And how vulnerable are existing incumbents like Polycab, KEI Industries, and Havells? UltraTech’s Big Bet o...