3 Cable & Networking Stocks That Could Benefit from Data Centre Boom in India
India’s data center industry is expanding rapidly due to cloud computing, AI infrastructure, and increasing internet usage. The cable and telecom equipment sector plays a crucial role in building digital infrastructure. Companies involved in fiber optics, telecom networking, and telecom equipment could see strong demand growth.
Here are three stocks from the cable and networking sector that may benefit from the data center boom.
| Metric | Value |
|---|---|
| EPS (TTM) | -42.81 / -43.33 |
| CEPS (TTM) | -19.99 / -20.52 |
| PE | -11.50 / -11.36 |
| ROE / PB | -20.42 / 2.35 |
| Face Value | 10 |
| 52W High | 914.50 |
| 52W Low | 294.10 |
| Industry | Telecom Equipment |
- Strong telecom equipment portfolio
- Beneficiary of 5G rollout
- Growing demand for optical networking
- Support from Tata Group ecosystem
| Metric | Value |
|---|---|
| EPS | 2.50 / 2.53 |
| CEPS | 7.92 / 7.94 |
| PE | 57.32 / 56.69 |
| ROE / PB | 2.85 / 1.63 |
| 52W High | 215 |
| 52W Low | 121 |
- Growing fiber optic cable demand
- Expansion of telecom infrastructure
- Increasing broadband penetration
- Beneficiary of data center expansion
| Metric | Value |
|---|---|
| EPS | 2.62 / 7.44 |
| CEPS | 2.65 / 10.09 |
| PE | 141.95 / 49.98 |
| ROE / PB | 5.39 / 7.67 |
| 52W High | 712.95 |
| 52W Low | 360.95 |
- Electronics manufacturing growth
- Strong presence in telecom infrastructure
- Increasing demand from mobile ecosystem
- Government PLI scheme support
- High valuation in some stocks
- Dependence on telecom sector spending
- Execution risk in large infrastructure projects
- Global semiconductor supply risks
| Stock | Current Price | 2030 Target | Potential Return | Return Multiple |
|---|---|---|---|---|
| Tejas Networks | ₹492.45 | ₹1900 | ≈ 286% | 3.8X |
| Birla Cable | ₹143.30 | ₹600 | ≈ 318% | 4.1X |
| Optiemus Infracom | ₹371.90 | ₹1300 | ≈ 249% | 3.5X |
| Stock | Shares Purchased | Investment Value in 2030 | Profit Potential |
|---|---|---|---|
| Tejas Networks | 203 Shares | ₹3,85,700 | ₹2,85,700 |
| Birla Cable | 698 Shares | ₹4,18,800 | ₹3,18,800 |
| Optiemus Infracom | 268 Shares | ₹3,48,400 | ₹2,48,400 |
Simulation assumes investment of ₹1,00,000 at current market price and future stock price reaching projected 2030 targets. Actual returns may vary depending on market conditions.
The telecom equipment and fiber optic cable industry plays a critical role in building modern digital infrastructure. Data centres require extremely fast and reliable connectivity between servers, storage devices, cloud platforms, and end users. This connectivity is primarily enabled by high-speed optical networking and telecom infrastructure companies.
Fiber optic networks allow data to travel at extremely high speeds with minimal latency and signal loss. This is why modern hyperscale data centres rely heavily on optical networking infrastructure to process massive amounts of data efficiently. Fiber optics also reduce interference, increase reliability, and enable long-distance data transmission, making them the preferred technology for global internet infrastructure.
In a data centre environment, thousands of servers communicate continuously with each other and external networks. Fiber optic cables help ensure faster data processing, lower latency, and high bandwidth capacity, which are essential for real-time applications such as cloud computing, AI workloads, financial trading systems, and streaming services.
India's data centre industry is experiencing massive expansion due to the digital economy, cloud computing adoption, and increasing internet usage. According to industry reports, India's data centre capacity could increase nearly five times by 2030 as data traffic continues to surge across the country.
- Rapid growth of cloud computing platforms
- 5G network deployment
- Video streaming and OTT platforms
- Digital payments and e-commerce expansion
- Government data localisation policies
Artificial Intelligence requires massive computational power to train and operate AI models. Large AI models are trained on thousands of GPUs and servers simultaneously, which significantly increases demand for data centre capacity.
AI servers consume far more power and computing resources compared to traditional servers. In fact, AI workloads can require several times more power and networking infrastructure, which directly drives the need for larger and more advanced data centres.
As AI applications expand into industries such as healthcare, finance, autonomous vehicles, robotics, and generative AI tools, the amount of data being processed is increasing exponentially. This trend is expected to significantly boost demand for fiber optic networks, telecom equipment, and data centre infrastructure over the next decade.
- Data centres require high-density fiber optic networks
- AI clusters require high-speed interconnects
- Hyperscale cloud providers need large telecom infrastructure
- 5G networks require fiber backhaul connectivity
- Edge computing increases regional data centre demand
| Company | 2027 Target | 2028 Target | 2029 Target | 2030 Target |
|---|---|---|---|---|
| Tejas Networks Ltd | ₹950 | ₹1200 | ₹1500 | ₹1900 |
| Birla Cable Ltd | ₹220 | ₹300 | ₹420 | ₹600 |
| Optiemus Infracom Ltd | ₹520 | ₹700 | ₹950 | ₹1300 |
Note: These projections are based on sector growth trends, telecom infrastructure expansion, and increasing data centre demand driven by AI adoption. These are hypothetical estimates for educational purposes and not financial advice.
| Company | Current Price | EPS | PE | ROE | 52W High | 52W Low |
|---|---|---|---|---|---|---|
| Tejas Networks | ₹492.45 | -42.81 | -11.50 | -20.42 | ₹914.50 | ₹294.10 |
| Birla Cable | ₹143.30 | 2.50 | 57.32 | 2.85 | ₹215 | ₹121 |
| Optiemus Infracom | ₹371.90 | 2.62 | 141.95 | 5.39 | ₹712.95 | ₹360.95 |
| Stock | Trend | RSI | 50 DMA | 200 DMA | Momentum |
|---|---|---|---|---|---|
| Tejas Networks | Bullish Reversal Zone | 52 | Above | Near Support | Improving |
| Birla Cable | Range Bound | 48 | Near | Above | Neutral |
| Optiemus Infracom | Strong Volatility | 46 | Below | Above | Recovery Zone |
The multibagger probability score is based on sector growth potential, telecom infrastructure demand, financial strength, and expansion opportunities related to data centre development and AI infrastructure.
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