Buy Polycab India; target of Rs 7300: Sharekhan

Sharekhan is bullish on Polycab India has recommended buy rating on the stock with a target price of Rs 7300 in its research report dated March 06, 2025.

Broker Research

March 07, 2025 / 13:14 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Sharekhan's research report on Polycab India

UltraTech’s foray into cables & wires business with an Rs 1800 crore capex has passed jitters down in the C&W industry. Bourses reacted surprisingly negative to the UltraTech news extrapolating it to the valuation re-rating in the paints industry when UltraTech forayed into it. Polycab has picturised its next STRAP plan called SPRING project and targets to grow 1.5-2x higher than industry growth (expected to be 1.5-2x of GDP growth), clocking a CAGR of 15-20% in 5 years. Export sales are seen at 10% of total sales. C&W margins are guided at 11-13%, while FMEG are eyed at 8-10%. Capex guidance of Rs 6000-8000 crore for an asset turn of 4-5x. Strong government and private capex with a growing real estate sector augurs well for the company’s growth.

Outlook

We expect revenue/PAT to post a CAGR of 20%/21%, respectively, from FY2024-FY2027, with a good RoCE of 32%. Hence, we maintain Buy with PT of Rs. 7,300.

For all recommendations report, click here