Shares of Polycab India and KEI Industries were higher by a percent during early trade in an otherwise weak market as positive brokerage views helped recoup some of the losses following Ultratech's announcement on cables and wires (C&W) foray.
As of 10:30 am, Polycab India share prices were higher by 1.39 percent, trading at Rs 4,779 while KEI Industries at Rs 3,093 was higher by 0.76 percent.
Leading investment bank UBS revised its outlook on key C&W players, maintaining a 'Buy' on KEI Industries, but lowered target price to Rs 5,000 per share, down from Rs 5,700 per share. UBS lowered the target price for Polycab India to Rs 7,700 per share from Rs 9,000 per share previously, keeping the 'Buy' call. Jefferies too maintained a 'Buy' rating on Polycab India but slashed target price to Rs 6,485 per share from earlier Rs 7,700/share.
The price cuts followed a sharp 20 percent drop over past two sessions, triggered by UltraTech’s plans to enter the cables and wires (C&W) segment.
Polycab India now trades at 27 times its FY26 earnings, still lower than its highest historical average. Jefferies said it sees no immediate impact on Polycab's growth over FY25-27, expecting a robust sales CAGR of 22 percent and profit CAGR of 28 percent, driven by new orders and improving performance in the Fast Moving Electrical Goods (FMEG) segment.
Jefferies highlighted exports as a promising opportunity, especially as part of the China+1 strategy, maintaining a healthy medium-term outlook for the stock. Factoring in the stock correction and an anticipated rise in competition after 2027, it has cut the price-to-earnings (P/E) multiple by 15 percent to 32x.
Last week, Aditya Birla group had announced that Ultratech Cement will be foraying into the cables and wires segment with plans to spend Rs 1,800 crore over two years to establish a cable and wires facility in Bharuch, Gujarat. Right after the announcement, the shares of Ultratech Cement dropped by 5 percent. However, as of Monday, March 3, the shares are bouncing back to trade higher by about 2 percent.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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