Looking forward, Polycab aims to sustain its leadership with industry-beating growth. The domestic wires and cables market is expected to grow 12–14%, while Polycab targets 15–20%, backed by rising investments in power transmission, distribution, and private cape.
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 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:
-
~22% EPS CAGR over FY25- FY28E,
-
post-tax RoCE of 21.3% in FY28E, and
-
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.
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.
. Read more on Research Reports by NDTV Profit.