Polycab India, KEI, Havells, Amber Enterprises, PG Electroplast: What Nuvama says
Nuvama continued to endorse Polycab India, KEI Industries, Havells India, Amber Enterprises, and PG Electroplast as its top picks. In contrast, it maintained a cautious outlook on Symphony and Voltas.
- Aug 22, 2025,
- Updated Aug 22, 2025 9:14 AM IST
Nuvama has reiterated its position on preferred stocks within the Cables & Wires (C&W) and Electronics Manufacturing Services (EMS) sectors. Despite a challenging environment for appliances, Nuvama continued to endorse Polycab India, KEI Industries, Havells India, Amber Enterprises, and PG Electroplast as its top picks. In contrast, it maintained a cautious outlook on Symphony and Voltas.
The C&W sector has demonstrated robust performance, with companies reporting a 28% rise in revenue, driven by strong double-digit volume growth. This surge is attributed to the low base following the general elections in May 2024. Nuvama said copper and aluminium prices have seen a modest 3% year-over-year increase. Exports in this sector have also witnessed significant growth, a result of companies' efforts to expand into new categories and geographies.
Simultaneously, the EMS sector has sustained strong growth despite a weak summer affecting appliances. Nuvama's coverage showed revenue, Ebitda, and PAT growth of 62%, 54%, and 41% respectively compared to the previous year. This performance was underpinned by robust demand, partly bolstered by regulatory support. Yet, the sector faced challenges, with aggregate margins declining due to weaknesses in Room Air Conditioners (RAC) contract manufacturers like PG Electroplast and Amber Enterprises.
The market for large and small appliances, such as air coolers and fans, suffered significantly due to an unseasonably weak summer. Sales dropped by over 25-30% for RACs and air coolers, with double-digit declines in fans, reflecting a tough demand scenario. This decline has led to high levels of off-season RAC inventory, which could further strain contract manufacturers, Nuvama said.
On the brighter side, the C&W sector continues to outpace wire growth, particularly due to favourable conditions for power cables. Operating margins in this sector remain strong, with companies like Polycab and Havells outperforming industry averages. This indicates a positive outlook and reinforces Nuvama's confidence in its stock selections.
Notably, the EMS companies under Nuvama’s coverage, such as Dixon, Amber, and Kaynes, have been standout performers. Dixon, for instance, saw a 95% year-over-year increase, while Amber and Kaynes reported 44% and 34% growth respectively. Despite a dip in margins due to RAC-related weaknesses, companies like Kaynes and Syrma have managed gains thanks to a favourable mix, Nuvama said.
The broader market implications suggest a mixed outlook. While the RAC sector faces near-term challenges, the potential GST rate reductions and changes in Bureau of Energy Efficiency standards could influence future market dynamics. Companies are also adjusting their strategies, with many filing applications under the new Electronics Components Manufacturing Scheme to mitigate potential impacts.
Looking ahead, Nuvama remains optimistic about the C&W and EMS sectors, particularly their preferred picks. While the challenges persist, especially for RAC manufacturers, the medium-term recovery prospects are supported by low inflation, a robust monsoon, and potential regulatory changes. As these sectors continue to evolve, the emphasis on strategic expansion and regulatory adaptation will be crucial for sustaining growth.
Nuvama has reiterated its position on preferred stocks within the Cables & Wires (C&W) and Electronics Manufacturing Services (EMS) sectors. Despite a challenging environment for appliances, Nuvama continued to endorse Polycab India, KEI Industries, Havells India, Amber Enterprises, and PG Electroplast as its top picks. In contrast, it maintained a cautious outlook on Symphony and Voltas.
The C&W sector has demonstrated robust performance, with companies reporting a 28% rise in revenue, driven by strong double-digit volume growth. This surge is attributed to the low base following the general elections in May 2024. Nuvama said copper and aluminium prices have seen a modest 3% year-over-year increase. Exports in this sector have also witnessed significant growth, a result of companies' efforts to expand into new categories and geographies.
Simultaneously, the EMS sector has sustained strong growth despite a weak summer affecting appliances. Nuvama's coverage showed revenue, Ebitda, and PAT growth of 62%, 54%, and 41% respectively compared to the previous year. This performance was underpinned by robust demand, partly bolstered by regulatory support. Yet, the sector faced challenges, with aggregate margins declining due to weaknesses in Room Air Conditioners (RAC) contract manufacturers like PG Electroplast and Amber Enterprises.
The market for large and small appliances, such as air coolers and fans, suffered significantly due to an unseasonably weak summer. Sales dropped by over 25-30% for RACs and air coolers, with double-digit declines in fans, reflecting a tough demand scenario. This decline has led to high levels of off-season RAC inventory, which could further strain contract manufacturers, Nuvama said.
On the brighter side, the C&W sector continues to outpace wire growth, particularly due to favourable conditions for power cables. Operating margins in this sector remain strong, with companies like Polycab and Havells outperforming industry averages. This indicates a positive outlook and reinforces Nuvama's confidence in its stock selections.
Notably, the EMS companies under Nuvama’s coverage, such as Dixon, Amber, and Kaynes, have been standout performers. Dixon, for instance, saw a 95% year-over-year increase, while Amber and Kaynes reported 44% and 34% growth respectively. Despite a dip in margins due to RAC-related weaknesses, companies like Kaynes and Syrma have managed gains thanks to a favourable mix, Nuvama said.
The broader market implications suggest a mixed outlook. While the RAC sector faces near-term challenges, the potential GST rate reductions and changes in Bureau of Energy Efficiency standards could influence future market dynamics. Companies are also adjusting their strategies, with many filing applications under the new Electronics Components Manufacturing Scheme to mitigate potential impacts.
Looking ahead, Nuvama remains optimistic about the C&W and EMS sectors, particularly their preferred picks. While the challenges persist, especially for RAC manufacturers, the medium-term recovery prospects are supported by low inflation, a robust monsoon, and potential regulatory changes. As these sectors continue to evolve, the emphasis on strategic expansion and regulatory adaptation will be crucial for sustaining growth.