Shares of cables and wires manufacturer Polycab India jumped nearly 5 percent to nearly a five-month high on June 23 as investors cheered a positive note by Jefferies which mentioned that the company has gained market share during the fiscal year gone by.
Jefferies maintained its 'Buy' call on the stock with a target price of Rs 7,150 apiece, implying an upside potential of over 19 percent from Friday's closing price of Rs 6,000 apiece.
Polycab gained around a percent of market share in the organised cables and wires segment in FY25, CNBC-TV18 reported, citing the brokerage note. A capex of Rs 2,800 crore during the last four years helped the company achieve a 26 percent Compounded Annual Growth Rate (CAGR) in the cable and wires segment, helping it command a P/E of 34x the FY26 earnings estimate.
"In view of the strong order book in cables and wires (especially Bharat Net), we raise the FY27-28 earnings per share estimate by 2.4%, retain P/E ratio at 33x, in-line with historical five-year average," the report said, quoting the Jefferies note.
Polycab Share Price
Polycab shares have gained nearly 7 percent in the past one month but have fallen over 14 percent in 2025 so far. The stock is currently at a P/E ratio of nearly 55.
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The sharp rise in the share price on June 23 was likely driven by rising investor interest , with over 9 lakh shares actively traded today, which is nearly three-times higher than its 10-day average volume.
The stock ended the session as the top gainer on the Nifty Midcap 100 index.
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