Polycab India shares rise 3% as brokerages remain upbeat following Q3

Polycab India shares have slipped over 15 percent since the start of the year.

Shares of Polycab India rose over 3 percent to Rs 6,380 in morning trade on January 23, snapping its two-day losing streak on the bourses, following the company's Q3 results. A host of brokerages remained bullish on the stock.

The wire manufacturer reported a consolidated net profit of Rs 457.57 crore in the October-December quarter of the current financial year. This marks an increase of 11 percent from the Rs 412.85 crore net profit reported in the corresponding quarter of FY24.

Its revenue from operations stood at Rs 5,226 crore in Q3 FY25. It saw a strong rise of nearly 20 percent from the Rs 4,340.4 crore revenue reported in Q3 FY24. "Robust performance across businesses helped the Company register its highest ever third quarterly revenue. 9-month revenue surpassed the milestone of Rs 15,000 crore for the first time ever," Polycab said.

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UBS has maintained a buy rating on Polycab with a target price of Rs 9,000 per share, a massive upside of 46 percent from the previous close of Rs 6,164. While the company's Q3 topline missed consensus estimates by 3 percent, its EBITDA surpassed expectations by 7 percent. The 12 percent topline growth in the cables and wires segment contributed to the overall miss in revenue. UBS attributed the weaker results to slowing government capex but expects a recovery with a rebound in government spending. Additionally, the FMEG segment showed a sequential reduction in losses.

Citi has reiterated a buy call on Polycab with a target price of Rs 8,600 per share. The company reported 20 percent year-on-year revenue growth, which fell short of estimates. However, the wires and cables segment outperformed with better-than-expected margins, driven by the normalization of pricing. A lower loss in the FMEG business and strong EBITDA growth, ahead of estimates, were key highlights.

Macquarie has given Polycab an outperform rating, setting a target price of Rs 7,928 per share. The brokerage highlighted a strategic outlook projecting a nearly 15 percent revenue CAGR between FY25 and FY30. While reported revenue was in line with expectations, the cable and wire segment's better-than-expected margin emerged as a key positive surprise.

Jefferies has maintained a buy rating with a target price of Rs 9,220. The brokerage noted that wire demand softened during Q3 due to a decline in copper prices and higher channel inventory at the start of the quarter. However, Jefferies remains optimistic about Polycab, citing its strong medium-term guidance. It views the company as a promising play on capex and housing growth, projecting a robust sales and PAT CAGR of 24 percent and 25 percent, respectively, for FY24-27.

Morgan Stanley has maintained an overweight rating on Polycab with a target price of Rs 7,537. The brokerage highlighted disappointing implied domestic cable and wire volume, with domestic volume growth limited to single digits. While cable demand remained healthy, it was weaker in the copper segment. On a positive note, margins improved, supported by the wire business and strong exports.

The company further announced that it is poised to meet its FY26 revenue target earlier than committed. Its net sales have reached Rs 21,000 crore, already crossing its earlier set FY26 target of Rs 20,000 crore.

At about 9:20 am, shares of the company were trading at Rs 6,369, higher by 3.3 percent from the last close on the NSE. Polycab India shares have slipped over 15 percent since the start of the year.

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