Buy Polycab India; target of Rs 8300: Sharekhan

Buy

Sharekhan's research report on Polycab India

The W&C segment is likely to see strong traction, backed by uptick in demand from power and real estate sectors. The company looks forward to invest Rs. 1,000-1,100 crore each year in the coming year majorly towards capacity expansion in the W&C segment. Polycab is set to overachieve a Rs. 20,000 crore FY2026 LEAP project target in FY2025. LEAP 2.0 (Next five-year plans) is expected to be announced soon.

Outlook

Strong government and private capex with a growing real estate sector augurs well for the company’s growth. We expect revenue/PAT to register a CAGR of 20%/21%, respectively, from FY2024-FY2027, with a good RoCE of 32%. Hence, we maintain Buy with an unchanged PT of Rs.8,300.

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Polycab India - 01012025 - khan