Sector Alpha

Track where the smart money flows in Indian equities

DashboardWeekly UpdateSector Deep DivesUploadPipelinePE CyclesBrainAboutHow We Research

Data updated weekly. Not financial advice.

Sector Alpha
  1. Home
  2. /Deep Value
  3. /Cables - Power
MomentumDeep Value

Which Cables - Power Stocks Are Deep Value Picks in Week of Jul 10, 2026?

In the Week of Jul 10, 2026, the Cables - Power sector has 1 stock that is underperforming Nifty 500 but has accelerating quarterly earnings. Average value score is 44/100.

Total Stocks
1
deep value
Avg Fundamental
44
/100
Top Pick
V-Marc
Score: 44/100
Avg Margin of Safety
Undervalued

Stock Distribution

0 Strong0 Good1 Average0 Weak

Earnings & Valuation Signals

💰

1 of 1 stock trading below fair value — sector offers value opportunities.

AI Research Summary

Sector Pulse

The Cables and Power sector delivered a quarter characterized by 16% to 54% YoY revenue growth across 5 of 6 constituents, offset by a 10.3% contraction at UNIVCABLES. Volume growth reached 40% for POLYCAB and 30% for RRKABEL, proving that top-line beats were driven by physical demand rather than mere commodity price pass-throughs.

Catalysts Playing Out Across the Pack

The Value Added Product Mix Shift is the dominant theme. APARINDS pushed its premium product mix to 44.2%, while DIACABS expanded gross margins to 23.3% via Extra High Voltage (EHV) cable sales. Concurrently, Operating Leverage Inflection is visible; RRKABEL posted 86% YoY EBITDA growth, and DIACABS saw a 52% QoQ EBITDA jump as fixed costs were absorbed by higher volumes. The Order Book Or Contract Wins catalyst remains active, with KEI sitting on an INR 3,928 Crore backlog and POLYCAB executing an INR 4.5 billion BharatNet order.

What Managements Are Guiding

Forward outlooks are overwhelmingly numeric and upward-trending. DIACABS raised its revenue target to "Higher double digits", and KEI bumped Q4 growth expectations to "25% plus". Capex commitments are massive, totaling over INR 6,000 crores across the group, led by KEI's INR 2,000 crore plan and POLYCAB's INR 12-16 billion annual run-rate.

Sub-Sector Aggregates

Looking at the aggregates, the YoY Revenue Growth range spans -10.3% to 54%, with 4 of 6 players exceeding 15%. The EBITDA Margin range sits between 8.1% and 14.7%. Companies with higher B2C and EHV exposure (DIACABS at 14.7%, POLYCAB at 12.7%, KEI at 11.98%) are defending double-digit margins better than those heavily indexed to standard institutional cables.

Shared Risks (9-type taxonomy)

The commodity risk is the most acute headwind. Copper and aluminum prices spiked 11% to 25% sequentially between September and December 2025. This forced POLYCAB to absorb a 300 bps margin hit to protect market share, while RRKABEL noted working capital pressure at the channel level. geopolitical risks are also fracturing the export narrative; US Section 232 tariffs caused APARINDS' US cable revenue to plummet 65%, forcing a pivot toward the EU and Middle East—a strategy KEI has already executed, yielding 95% export growth.

Bottom Line

The sector is absorbing a severe commodity shock through volume growth and premiumization. With over INR 6,000 crores in capex entering the pipeline and EHV demand accelerating, the structural setup remains intact despite near-term margin volatility.

Last updated Apr 19, 2026

1 stocks in this sector

View:
Average44/100

V-Marc India Ltd

3.8K Cr
Deeply Undervalued
Earnings Pulse
PAT YoY
+156%
Stable
Revenue YoY
+98%
Momentum
Building
↗

Explore More

All Deep Value SectorsMomentum Sectors← Back to Dashboard

Frequently Asked Questions: Cables - Power

Based on publicly available financial data. This is educational research, not investment advice.

How many Cables - Power stocks are deep value opportunities worth studying?

There is currently 1 stock in the Cables - Power sector that qualifies as a deep value opportunity worth studying. Deep value candidates are underperforming the market despite showing improving earnings — a classic contrarian research signal.

Which Cables - Power deep value stocks appear most undervalued?

The most undervalued Cables - Power deep value stocks based on fair value analysis

  • V-Marc India Ltd — Significantly Undervalued
  • Stocks sorted by valuation signal (most undervalued first).

Which Cables - Power deep value stock has the highest earnings acceleration?

Cables - Power deep value stocks with the highest earnings growth

  • V-Marc India Ltd — PAT growth +156.0% YoY, earnings stable

Why are Cables - Power stocks underperforming despite improving earnings?

Cables - Power deep value stocks are underperforming despite improving earnings because the market has not yet recognized their earnings recovery. This creates a potential opportunity for patient investors

  • The market often takes 2-4 quarters to re-rate stocks after earnings improve
  • Deep value stocks typically have a negative narrative that suppresses sentiment
  • Improving earnings combined with market underperformance creates a valuation gap
  • When the market eventually recognizes the recovery, re-rating can be significant
  • This is an educational explanation of deep value investing theory.

Which Cables - Power deep value stocks have the highest revenue growth?

Cables - Power deep value stocks with the highest revenue growth

  • V-Marc India Ltd — Revenue growth +97.5% YoY

What is the average PE ratio of Cables - Power deep value stocks?

The average PE ratio of Cables - Power deep value stocks is 34.1x. Deep value stocks typically trade at lower PE multiples relative to their sector peers, reflecting the market's skepticism about their recovery.

Is the earnings recovery in Cables - Power sustainable?

Sustainability indicators for the Cables - Power deep value earnings recovery

  • A sustainable recovery shows more stocks accelerating than decelerating.

Is Cables - Power a contrarian opportunity worth studying?

Cables - Power as a contrarian opportunity — key research signals

  • 1 stock underperforming the market (contrarian setup)
  • 1 stock appears undervalued based on fair value analysis
  • Contrarian investing requires patience.

What is the typical recovery timeline for deep value stocks?

Deep value stock recovery timelines vary, but historical patterns suggest

  • 1-2 quarters: Earnings inflection detected, market still skeptical
  • 2-4 quarters: Consistent earnings improvement builds confidence
  • 4-6 quarters: Market re-rates, stock price catches up to fundamentals
  • Some stocks never recover — continuous monitoring is essential
  • Timelines are approximate and based on historical patterns.

What is deep value investing?

Deep value investing is a strategy of studying stocks that are underperforming the market despite showing improving fundamentals (earnings growth, margin expansion). The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap.

  • These stocks typically underperform indices like Nifty 500
  • They show positive earnings trends (PAT growth, revenue growth)
  • The market eventually re-rates them as earnings improvements sustain
  • It requires patience — recovery can take several quarters

The above FAQs are based on publicly available financial data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.