Buy Polycab India; target of Rs 9110: Motilal Oswal

Motilal Oswal's research report on Polycab India

We met with the management of Polycab India (POLYCAB) to get an update on business trends across Cables & Wires (C&W), FMEG, and EPC segments, RM price trends, and the company’s key strategic initiatives. Management reiterated strong demand momentum in the C&W business, led by broad-based growth across power, infrastructure, real estate, and industrial capex, supported by rising opportunities in renewables and data centers. The company reiterated that India’s C&W market will grow 2.0x of real GDP growth, with POLYCAB estimated to jump 1.5x of the industry growth. The company maintains a unique leadership position in C&W with a product portfolio, distribution network, and capacity base ~2-3x that of its nearest competitors. It reported strong growth in 2Q and expects momentum to continue in 3QFY26E.

Outlook

We remain structurally positive on POLYCAB, given its leadership position in the C&W segment, positive sector outlook, robust balance sheet, and strong return ratios. We reiterate our BUY rating with a TP of INR9,110 (based on 40x Dec’27E EPS).