Polycab reinforced its leadership in the Indian wires and cables market in FY25, expanding its share of the organized segment between26–27%, up by 100 bps YoY. W&C revenue grew ~20% during the year, significantly outpacing industry growth of ~12%.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
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:
~18% EPS CAGR over FY25-FY27E,
post-tax RoCE of 20.6% in FY26E, and
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.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
