Polycab India shares rise 3% after selloff as investors reassess UltraTech threat
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Shares of Polycab India climbed as much as 3.3% on Friday to Rs 4,828 on the BSE, rebounding from an 18.8% plunge in the previous session as investors reassessed the competitive risks posed by UltraTech Cement’s surprise entry into the wires and cables industry. The recovery came after a brutal selloff on Thursday, when HSBC slashed target prices for leading wires and cables companies by up to 23%, citing UltraTech’s Rs 1,800 crore investment as an “industry-fragmenting” event that could weigh on long-term earnings growth for incumbents. The recovery in Polycab shares was part of a broader rebound in the sector. KEI Industries rose 4.2% higher on Friday to Rs 3,123.15 on the BSE, R R Kabel climbed 3.4%, while Havells reversed gains to trade flat on Friday. Despite the price cuts, HSBC maintained its ‘buy’ ratings on Polycab, Havells India, and R R Kabel, while keeping KEI Industries at ‘hold.’ The brokerage lowered its price targets on Po...