Polycab India - High Infra Spend To Aid Long Term Growth: Nirmal Bang

Nirmal Bang Report

Key Points

1. We hosted the management of Polycab India Ltd. the management stated that growth in installed renewable power capacities and infrastructure developments are expected to boost demand for cables (on both domestic and export fronts) while continued uptick in residential real estate segment is expected to boost demand for wires in the domestic market.

2. Post the rejig of distribution channel in the fast moving consumer goods portfolio and continued investments in brand promotion, the fast moving electrical goods segment is expected to start showing healthy growth FY24 onwards.

3. While we have downgraded Polycab to 'Accumulate' we maintain our target price of Rs 5,335, valuing it at 40 times on June-2025E earning per share.

We remain structurally positive on Polycab India's long-term business outlook due to tailwinds in the wire and cable business, management’s superior execution capabilities and continued growth momentum in the high-margin cable exports business.

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