'Hold' Polycab Shares Maintains Nirmal Bang, Says Execution, Favorable Industry Tailwinds To Drive Growth

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Nirmal Bang Report

We maintain Hold on Polycab India Ltd. with a target price of Rs 6,555. This implies a P/E of 35x on FY27E EPS and it is at a ~16% premium to the five-year historical average P/E multiple on a 1one-year forward basis. We believe that the multiple is fair and adequately captures:

1. ~18% EPS CAGR over FY25-FY27E,

2. post-tax RoCE of 20.6% in FY26E, and

3. correctly rewards the company for strong tailwinds in cables–which started only a couple of years back.

We remain structurally positive on Polycab’s long-term prospects, viewing it as a strong compounder that should be accumulated on dips. While we stay cautious on potential medium-to-long term risks from new entrants like UltraTech and Adani in the W&C segment— particularly around growth, margins, and RoCE—we expect Polycab to deliver healthy revenue and profit growth driven by solid execution and favorable industry tailwinds.

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