'Hold' Polycab Shares Maintains Nirmal Bang, Sees Long-Term Story Intact Amid Strong Demand Tailwinds

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Nirmal Bang Report

We maintain Hold on Polycab India Ltd. with a target price of Rs 7,790. This implies a P/E of 35x on Sep27E EPS and is at a ~16% premium to the five-year historical average P/E multiple, while being in line with its three-year average.

We believe that the multiple is fair and adequately captures:

1. ~22% EPS CAGR over FY25- FY28E,

2. post-tax RoCE of 21.3% in FY28E, and

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

We continue to view the company’s long-term outlook as healthy, supported by its strong business fundamentals.

While the near-term setup does not call for aggressive buying, we think the stock remains a strong long-term story and could be added gradually on meaningful dips.

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