Jefferies has reiterated its Buy rating on Polycab India Ltd, raising the target price from ₹6,485 to ₹7,050, suggesting upside from the current market price of ₹5,910.00.
According to the brokerage, Polycab posted its highest-ever annual profit in FY25, driven by robust sales that offset a minor dip in operating profit margins (OPM). Jefferies highlighted the company’s continued market share gains, with the organised share now standing at 26–27%, up from 18% in FY19.
Jefferies does not expect any financial impact from new entrants over FY25–27 and forecasts strong sales and profit CAGR of 20% and 26%, respectively, during this period.
The stock currently trades at 34x FY26e price-to-earnings, which the brokerage notes is in line with its historical 5-year average valuation.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult a certified financial advisor before making any investment decisions.
