Jefferies has reiterated its buy rating on Polycab India Ltd, assigning a target price of ₹7,150 per share, as it highlighted robust growth across core and new business segments and strong future earnings visibility.
Polycab shares have surged 25% since March 2025, currently trading at 34x FY26 earnings, only marginally above its 5-year average valuation, Jefferies noted. The brokerage emphasized that the company gained 1% market share in its core Cables & Wires (C&W) segment during FY25.
Jefferies pointed to a ₹2,800 crore capital expenditure over the past four years, which significantly contributed to a 26% sales CAGR in the C&W segment. Additionally, the FMEG (Fast Moving Electrical Goods) segment turned profitable after 10 consecutive loss-making quarters, marking a major turnaround.
The company’s FY25 annual report also underscored Project ‘Spring’ and aggressive FY30 growth targets. Jefferies estimates a 26% CAGR in earnings per share (EPS) from FY25 to FY28, driven by a strong order book and improving margins in the FMEG segment.
Disclaimer: The views and recommendations above are those of the respective brokerage firm. They do not represent the views of this publication. Investors are advised to consult their financial advisers before making any investment decisions.
