New Delhi, Feb. 27 -- UltraTech Cement Ltd's decision to enter the cables & wires (C&W) industry has caused jitters across stocks in the sector on fears of heightened competition. Shares of Polycab India Ltd, KEI Industries Ltd, Havells India Ltd, RR Kabel Ltd and Finolex Cables Ltd fell by 5% to 20% on Thursday. It is also likely that valuations of some stocks were steep to begin with and just needed a trigger.

A primary concern is that the C&W sector could have a similar fate to that of the paints industry, which has seen new companies enter in recent years, weighing on valuation multiples of incumbents. UltraTech's capex for the C&W endeavour is Rs.1,800 crore over the next two years. It will set up a plant near Bharuch in Gujarat, wh...