Polycab India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Polycab India continues to exhibit strong operational momentum, driven by robust domestic demand in its core Cables & Wires (C&W) segment and significant growth in the Fast Moving Electrical Goods (FMEG) sector. Management's optimistic outlook is supported by structural drivers such as renewable energy investments and infrastructure expansion, which are expected to sustain revenue growth despite short-term geopolitical and commodity price challenges. Vista's forecast reflects a moderate revenue growth trajectory, with margins expected to remain stable, aligning with the company's disciplined capital allocation and operational efficiency strategies. The anticipated growth in the FMEG segment, particularly through premiumization, is a key factor supporting Vista's positive valuation outlook. However, potential headwinds from rising competition and export market volatility warrant close monitoring. Over the next 12-24 months, Polycab's strategic focus on expanding its distribution network and enhancing its product mix will be critical in navigating these challenges and capitalizing on emerging opportunities in the renewable energy and data center markets
Why We Like This Stock
- Strong domestic demand in the Cables & Wires segment and significant growth in the FMEG sector
- Management's focus on premiumization and operational efficiency is expected to enhance margins and market share
- A healthy order book and strategic initiatives like 'Project Spring' provide visibility for long-term growth
Things To Watch Out For
- Short-term headwinds from geopolitical tensions affecting export markets
- Potential margin pressures due to commodity price volatility and unfavorable product mix
- Intensifying competition in the electrical goods market may limit near-term valuation re-rating
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 18,039 | 22,408 | 28,844 | 32,538 | 39,229 |
| Profit Before Tax (Cr.) | 2,271 | 2,701 | 3,613 | 4,181 | 4,940 |
| PBT Margin | 12.6% | 12.1% | 1252.6% | 12.9% | 12.6% |
| Net Profit (Cr.) | 1,739 | 2,086 | 2,674 | 3,096 | 3,609 |
| Earnings Per Share | 114.2 | 136.8 | 175.1 | 202.8 | 239.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 10,676 | 17-Jul-2026 |
| BOB Capital Markets | ► Hold | 9,300 | 07-May-2026 |
| CLSA | ▲ Outperform | 10,150 | 28-Jul-2026 |
| Citigroup | ▼ Underperform | 10,900 | 17-Jul-2026 |
| Elara Capital | ► Accumulate | 8,920 | 07-May-2026 |
| Goldman Sachs | ► Neutral | 8,920 | 07-May-2026 |
| HSBC | ▲ Buy | 10,160 | 17-Jul-2026 |
| ICICI Securities | ► Add | 9,850 | 17-Jul-2026 |
| JMFinancials | ▲ Buy | 10,700 | 17-Jul-2026 |
| JPMorgan | ▲ Overweight | 10,000 | 17-Jul-2026 |
| Jeffries | ▲ Buy | 11,100 | 17-Jul-2026 |
| Kotak Securities | ▼ Sell | 8,700 | 19-Jun-2026 |
| Moneycontrol | ▼ Underweight | nan | 17-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 10,545 | 13-Aug-2026 |
| Motilal Oswal | ▲ Buy | 11,900 | 16-Jul-2026 |
| Nuvama | ▲ Buy | 10,510 | 17-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 10,764 | 17-Jul-2026 |
Company Overview
Show Company Profile
Polycab India Limited manufactures and sells wires and cables under the POLYCAB brand in India and internationally. The company operates through three segments: Wires and Cables; Fast Moving Electrical Goods (FMEG); and Engineering, Procurement and Construction (EPC). The Wires and Cables segment provides wires, such as PolycabSuprema house wires, PolycabMaxima+ Green wire, PolycabPrimma house wires, ETIRA house wires, PolycabOptima+, GREENWIRE 180m, and POLYCAB LF FR 180m; and cables, such as control, rubber, defense, special, fire protection, marine offshore/onshore, domestic appliance and lighting, aerial bunched, industrial, high temperature, LV power, MV power, EHV power, communication and data, and instrumentation. The Fast Moving Electrical Goods segment offers ceiling, table, pedestal, wall, exhaust, farrata, and air circulated fans; LED lighting and luminaires, such as LED Bulb, downlight, panel light, led batten, outdoor lights, and rope and strip lights; water heaters; switches and accessories; switchgears consisting of isolators, MCB, RCCB, RCBO, distribution board, ACCL, and MCB changeover switches; solar products, including solar panel and invertors; and pumps, conduits, and domestic appliances. The EPC segment designs, engineers, and supplies materials; and engages in the survey, execution, and commissioning of turn-key power distribution, transmission, and rural electrification projects. The company provides coolers and iron appliances. It operates a distribution network through authorized dealers and distributors, and retail outlets. The company was founded in 1964 and is based in Mumbai, India.