Brokerage firm Nuvama has retained its Buy rating on Polycab share price but has significantly increased its target price for Polycab shares after the wires and cable player announced its Q4 results on May 10. Nuvama has a new target price of Rs 7,280 on Polycab stock, which implies an upside of nearly 18% on the share price from previous close of Rs 6,180 on the NSE. The brokerage firm had a price target of Rs 6,139 earlier.
“The stock has rallied more than 35% since our last update leaving behind the regulatory overhang. We reckon revenue/EBITDA/PAT shall grow at a CAGR of 16%/16%/15% over FY24–26E. We are upgrading TP to INR7,280 (earlier INR6,139) on the back of an upward revision of our target valuation to 46x PE (earlier 40x); retain ‘BUY,” Nuvama said in its latest note.
Polycab‘s Q4 net profit surged 29% YoY to Rs 553 crore, compared to Rs 428 crore in the year-ago period. The company’s revenue also surged 29% YoY to Rs 5,592 crore as against Rs 4,324 crore in same period last year.
