Goldman Sachs has downgraded Polycab to ‘Neutral’ while cutting the target price to ₹5,005 from ₹6,510, citing valuation concerns and increasing competition in the cable & wire sector. The brokerage also maintained a ‘Neutral’ rating on KEI Industries, reducing its target price to ₹3,130 from ₹3,780.
Despite remaining positive on near-term demand fundamentals and India’s export potential in the cable & wire segment, Goldman Sachs believes that high valuations and increasing competition warrant caution. Currently, Polycab is trading at 31x FY27E P/E, while KEI is at 29x, which the brokerage sees as stretched levels. With new supply additions and rising sector attractiveness, competition is intensifying, leading Goldman Sachs to suggest waiting for better entry points before considering fresh investments in these stocks.
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