The cable sector in India is experiencing significant growth, driven by rapid digitization, infrastructure development, and government initiatives like smart cities and 5G adoption. For investors, this sector offers exciting opportunities, especially when it comes to finding undervalued stocks with high growth potential. If you’re looking for a hidden gem, this article will help you discover the hidden stock in the cable sector under ₹60 with a CAGR of 30%, based on recent insights and market trends. Let’s dive into the cable sector, explore its potential, and uncover a stock that could be a game-changer for your portfolio in 2025.
Why Invest in the Cable Sector in 2025?
The cable sector in India is a vital part of the country’s infrastructure growth, supporting industries like power, telecommunications, automotive, and construction. Here’s why this sector is a promising investment area
- Market Growth: The Indian cable industry is estimated to be worth ₹450–500 billion, constituting 40–45% of the electrical industry, and is projected to grow at a CAGR of 15% in the coming years.
- Rising Demand: Increasing internet penetration, with mobile subscriptions rising to 1,170.38 million by December 2021, has boosted the need for high-bandwidth structured cabling.
- Government Initiatives: Projects like the development of 100 smart cities, free Wi-Fi at railway stations, and the expansion of IT hubs in cities like Bengaluru and Hyderabad are driving demand for cables.
- Global Trends: Globally, the cable market is expected to grow at a CAGR of 6.45%, reaching USD 332.65 billion by 2026, reflecting the sector’s strong growth trajectory.
For investors, the cable sector offers a mix of stability (from established players) and growth potential (from smaller, undervalued companies). Stocks under ₹60 with a high CAGR (Compound Annual Growth Rate) can be particularly attractive, as they often fly under the radar but have the potential for significant returns.
What is CAGR, and Why Does It Matter?
CAGR, or Compound Annual Growth Rate, measures the annual growth rate of an investment over a specific period, accounting for the effect of compounding. It’s a key metric for investors because it provides a clear picture of how a stock or company has performed over time.For example, a stock with a net profit CAGR of 30% over three years means its profits have grown at an average rate of 30% annually, which is impressive, especially for a stock priced under ₹60. A high CAGR indicates strong growth potential, making such stocks attractive for investors seeking hidden gems.
The Hidden Stock in the Cable Sector under ₹60 with a 30% CAGR
Based on recent insights, one stock in the cable sector that fits the criteria of being under ₹60 with a net profit CAGR of around 30% is Cords Cable Industries Ltd. Here’s a closer look at this potential hidden gem:
About Cords Cable Industries Ltd
- Overview: Cords Cable Industries Ltd is engaged in the manufacturing and sale of electrical and electronic cables, including power cables, control cables, and instrumentation cables. The company serves various sectors, including power, oil refineries, railways, and telecommunications.
- Stock Price: As of recent data, the stock price of Cords Cable Industries Ltd is under ₹60, making it an affordable option for investors looking for undervalued stocks.
- CAGR Performance: According to posts on X, Cords Cable Industries has shown a revenue CAGR of 30%, indicating strong growth potential. While net profit CAGR specifics for this company weren’t directly available, its revenue growth aligns with the high-growth criteria we’re exploring.
- Market Cap: The company has a relatively small market cap, which is typical for hidden gems that have yet to be discovered by the broader market
- Recent Results: The company has experienced growth in its revenue from operations, showing a year-on-year rise, which supports its potential as a growth stock
Why Cords Cable Industries Could Be a Hidden Gem
- Undervalued Price: At under ₹60, the stock is accessible to small investors and has room for significant upside if the company continues its growth trajectory.
- Sector Tailwinds: The cable sector’s growth, driven by digitization and infrastructure projects, provides a favorable environment for companies like Cords Cable Industries to thrive.
- Diverse Applications: The company’s products cater to multiple industries, reducing its reliance on a single sector and enhancing its growth stability.
- Growth Potential: A revenue CAGR of 30% suggests that the company is scaling rapidly, which could translate into higher profits and stock price appreciation over time.
Other Notable Cable Stocks to Watch
While Cords Cable Industries fits the criteria of being under ₹60 with a high CAGR, it’s always wise to explore other options in the sector. Here are a few other cable stocks with strong growth potential, though their stock prices may be higher:
KEI Industries Ltd
- Net Profit CAGR: 29.1% (FY21 to FY24).
- Stock Price: Around ₹4,429.95 (as of recent data).
- Why It’s Notable: KEI Industries has delivered 71.6% returns in one year, showing strong market confidence
Universal Cables Ltd:
- Net Profit CAGR: 17.3% (FY21 to FY24).
- Stock Price: Around ₹703.9 (as of recent data).
- Why It’s Notable: The stock has given 49.5% returns in one year, with a market cap of ₹2,422 crores.
Polycab India
- Market Cap: ₹38,683.4 crores.
- Why It’s Notable: A leading player with a 15.5% year-on-year revenue growth in Q1 FY25.
While these stocks are priced above ₹60, they highlight the growth potential within the cable sector, which supports the case for smaller players like Cords Cable Industries
Factors to Consider Before Investing
Investing in a stock under ₹60 with a high CAGR can be rewarding, but it’s important to do your due diligence. Here are some factors to consider:
- Financial Health: Check the company’s profitability, cash flow, and debt levels. A high CAGR is promising, but it should be backed by strong fundamentals
- Market Risks: The cable sector is sensitive to raw material costs (e.g., copper, aluminum), which can impact profitability
- Volatility: Low-priced stocks can be more volatile, so be prepared for price fluctuations.
- Research: Look into the company’s management quality, competitive position, and growth plans. A high CAGR alone isn’t enough—ensure the company has a sustainable business model.
- Diversification: Don’t put all your money into one stock. Diversify across sectors to reduce risk.
How to Invest in Cable Sector Stocks
Investing in cable sector stocks is straightforward with the right platform. Here’s how you can get started:
- Open a Demat Account: Use platforms like Zerodha, Angel One, or Upstox to open a free Demat account
- Research the Stock: Use tools like Moneycontrol, Screener.in, or Equitymaster to analyze the stock’s performance, financials, and recent results
- Place Your Order
- Log in to your trading account.
- Search for the stock (e.g., Cords Cable Industries Ltd).
- Enter the quantity and place a buy order.
Benefits of Investing in Hidden Stocks in the Cable Sector
- High Growth Potential: Stocks with a 30% CAGR can deliver significant returns if the growth continues
- Affordable Entry Point: At under ₹60, these stocks are accessible to small investors.
- Sector Growth: The cable sector’s projected 15% CAGR in India provides a strong tailwind for growth.
- Early Mover Advantage: Investing in undervalued stocks before they gain mainstream attention can lead to higher returns
Risks to Understand
- Market Volatility: Low-priced stocks can be more susceptible to market swings.
- Company-Specific Risks: Smaller companies may face challenges like limited market share or operational inefficiencies
- Economic Factors: Rising raw material costs or economic slowdowns can impact the cable sector.
Conclusion
The cable sector in India is a promising area for investors, with strong growth driven by digitization, infrastructure development, and government initiatives. Cords Cable Industries Ltd, a stock under ₹60 with a reported revenue CAGR of 30%, stands out as a potential hidden gem in this sector. While its growth potential is exciting, it’s crucial to research the company’s financials, market position, and risks before investing. By diversifying your portfolio and staying informed, you can take advantage of opportunities in the cable sector and potentially achieve significant returns in 2025.
