Bajaj Electricals shares surge 11%, competitor stocks tumble up to 5%. What’s happening?

Shares of Bajaj Electricals Ltd. surged sharply on Tuesday, January 20, rising as much as 11% to an intraday high of Rs 468, after the company announced its foray into the wires segment, a move aimed at expanding and diversifying its business operations amid rising demand in the category.

The company said the wires business will be introduced as a new product line under its Lighting Solutions segment, signalling a strategic expansion within an existing vertical. Bajaj Electricals highlighted that demand in the wires industry has been on the rise and that the entry is expected to contribute meaningfully to sustainable long-term growth.

In a regulatory filing, Bajaj Electricals clarified that it plans to launch the new wire products shortly, after which it will closely monitor market response to determine the scale of investments required. The company noted that the eventual investment outlay will be guided by several factors, including the size of the opportunity, operational requirements, and prevailing external conditions.


Currently, the Lighting Solutions segment operates at margins of around 10%, which are broadly in line with margins seen across the cables and wires industry, where peers typically report margins in the 10–12% range.

However, the announcement weighed on shares of existing players in the housing wires segment. Stocks such as RR Kabel, Havells, and Finolex Cables declined by up to 5% during the same trading session, reflecting concerns over increased competition in the space.

In a recent interview with ET NOW, market expert Sandip Sabherwal underscored the resilience of the wires and cables segment, even as other areas of the construction ecosystem remain sluggish. He pointed out that growth in wires and cables has been consistently strong, standing out against the relatively muted performance of other construction-linked consumer products.

Sabherwal also noted that rising copper prices have not hurt demand, as the cost increases are largely passed through to customers. He added that end-users are willing to absorb higher prices because cables and wires are essential components, and without them, projects simply cannot move forward.

Bajaj Electricals’ stock price is down 35% in the last six months.

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