UBS has begun coverage on Polycab with a Buy rating and a target price of Rs 8,550, indicating a potential upside of 28% from the current market price of Rs 6,677. The investment bank’s bullish stance underscores Polycab’s strong position as a key player in the electrical and cable industry, with promising growth prospects.
UBS highlights Polycab as a cyclical growth champion, benefiting from ongoing long-term electrification trends. The company is well-positioned to leverage its growth-levered business model, which has seen the highest investment among its peers. This strategic positioning allows Polycab to capitalize on emerging opportunities within the electrical and cable sectors.
Polycab is poised to capture a larger share of the total addressable market (TAM) revenue. The company’s focus on fast-moving electrical goods (FMEG) and consumer pull is expected to drive significant revenue growth. UBS’s analysis suggests that Polycab’s robust business model and market positioning will enable it to expand its revenue share substantially in the coming years.
UBS notes that Polycab’s domestic performance has exceeded expectations, adding further confidence to the company’s growth trajectory. This stronger-than-anticipated performance, coupled with Polycab’s strategic investments and market potential, reinforces UBS’s positive outlook.
