
Polycab India continues to remain a favorite among brokerages, with multiple firms issuing positive recommendations despite some near-term challenges. While there are mixed opinions on recent quarterly performance, most brokerages maintain a bullish stance on the stock, underpinned by its long-term growth prospects in cables, wires, and the FMEG segment. Here’s a roundup of what leading brokerages are saying about Polycab:
Brokerage Ratings and Target Prices
Brokerage | Rating | Target Price (₹) |
---|---|---|
Macquarie | Outperform | 7,928 |
Citi | Buy | 8,600 |
UBS | Buy | 9,000 |
Jefferies | Buy | 9,220 |
Morgan Stanley | Overweight | 7,537 |
Detailed Brokerage Insights
Macquarie: Outperform, Target Price ₹7,928
- Highlights: Macquarie retains its ‘Outperform’ rating, driven by a strategic outlook that implies a 15% revenue CAGR over FY25-30.
- Performance: Revenue was in line with estimates, with the cable and wire segment delivering better-than-expected margins.
Citi: Buy, Target Price ₹8,600
- Positives: Revenue growth of 20% YoY came in below estimates, but margins in the wires and cables segment exceeded expectations.
- Additional Factors: Lower losses in the FMEG business and YoY EBITDA growth that outperformed estimates were key highlights.
UBS: Buy, Target Price ₹9,000
- Observations: Polycab missed topline consensus by 3%, but an EBITDA beat of 7% highlighted its margin strength.
- Concerns: A slowdown in government capex impacted results, though UBS expects a recovery with increased government spending.
- Outlook: Sequential reduction in FMEG losses added optimism.
Jefferies: Buy, Target Price ₹9,220
- Concerns: Wire demand weakened due to lower copper prices, and higher channel inventory at the start of Q3 affected sales.
- Outlook: Jefferies views Polycab as a strong play on capex and housing, with FY24-27 Sales/PAT CAGR of 24%/25%.
Morgan Stanley: Overweight, Target Price ₹7,537
- Performance: Domestic cable and wire volumes were weaker than expected, with single-digit growth.
- Positives: Margins improved, driven by exports and the wire business.
- Outlook: Long-term growth remains attractive despite short-term volume concerns.
Conclusion: Bullish Sentiment Dominates
Despite some short-term challenges, most brokerages remain bullish on Polycab, emphasizing its long-term growth potential driven by government capex recovery, strong housing demand, and improving margins in the wires and cables segment. The stock’s focus on the fast-growing FMEG segment is also seen as a key growth driver.
With target prices ranging from ₹7,537 (Morgan Stanley) to ₹9,220 (Jefferies), Polycab offers upside potential of 22-33% from its current market price. Investors looking for exposure to infrastructure and housing-driven growth may find Polycab an attractive option in the medium to long term.