Polycab Shares Get Target Price Upgrades After Q1 — Analysts Upbeat On Execution, Market Share Gain
Jefferies has hiked its target from Rs 7,150 to Rs 8,180 apiece on the Polycab stock.
Polycab India Ltd. share price has received target price upgrades from notable brokerages after its first quarter performance.
Jefferies has hiked its target from Rs 7,150 to Rs 8,180 apiece on the stock, implying a return potential of nearly 19% over the previous close.
UBS maintained its 'Buy' rating on Polycab and raised the target price to Rs 8,100 from Rs 7,150.
Five of the nine analysts tracking Polycab have a 'buy' rating on the stock, as per Bloomberg data. ICICI Securities, Goldman Sachs, and Investec have a 'hold/neutral' rating, while BNP Paribas has rated it 'underperform'.
Polycab Q1 Recap
Polycab India reported an all-round beat on performance in the June quarter, with consolidated revenues, Ebitda and net profit rising by 26%, 47% and 50% respectively. Margin expanded to 14.5% from 12.4% last year.
The main cables and wires segment grew by 33%, with cables outgrowing wires growth with near record high margins at 14.7% on the back of strategic price adjustments and operating leverage. Despite weak performance in fans, Fast-Moving Electrical Goods (FMEG) revenue grew 18% year-on-year while margins rose 280 basis points to 2.1%.
Brokerage Commentary
Jefferies noted the company's highest-ever Q1 sales and profit, which underscores its strong execution capabilities. The brokerage expects earnings growth of 26% annually between fiscal 2026 and 2028, driven by volume growth and FMEG margin improvement.
UBS said Polycab has been able to strengthen its position with market share gains and sustained industry-leading profits. "Strong first quarter performance was led by demand from power, T&D, data centres, real estate, cycle while infrastructure demand being soft, with revival there and exports market share gains, we believe the growth story for Polycab will further strengthen," a note said.
Polycab India shares has risen nearly 7% this month.
Shares of Polycab India ended 0.9% lower at Rs 6,886 on the NSE on Thursday, after the results, compared to a 0.4% decline in the benchmark Nifty. The stock has fallen 5% so far this year.
