Polycab India is up 18% in 1 month and the showcased strong Q4 performance and an optimistic growth roadmap for FY26. As a result, the brokerage firm Nuvama has maintained a ‘Buy’ rating with a target price of Rs 7,410 per share. This translates to potentially 26% upside from its current levels. The brokerage house is betting on Polycab’s startegic positioning in the sector.
Here is a look at the key triggers that supports the positive recomendation from Nuvama
Nuvama on Polycab India:Growth across key business segments
According to the brokerage firm, Polycab’s performance in the March quarter has been strong, with a 22% year-on-year jump in Cables & Wires, a 33% rise in the Fast-Moving Electrical Goods segment, and a 47% surge in Engineering, Procurement & Construction revenue.
The brokerage in its report highlighted that the company continues to target C&W revenue growth at “1.5-2x of industry growth,” while aiming to maintain an EBITDA margin between 11-13%.
The firm also added, “FMEG should see a further improvement in profitability on an annual basis while growing at 2x industry,” suggesting that Polycab is well-placed to benefit from rising demand in premium electrical goods, especially in fans, lighting, and solar products.
Nuvama on Polycab India: Future-ready focus
Despite a temporary dip in exports due to a rollover of a large order, Polycab’s export strategy remains on track.
“Visibility remains healthy with continued focus on expanding to new geographies… with the US transition now complete,” said the brokerage in its report. The company now exports to 84 countries and is targeting 10% export contribution by FY30, up from the current 6%.
Nuvama on Polycab India: Sector leader with pricing and margin edge
The brokerage also pointed out that the company is positioned as a sectoral leader. The brokerage noted the company’s superior margins to multiple factors such as “business mix, pricing premium, exports, and product diversification.”
Polycab India share performance
Polycab share price has surged 18% in the last one month. The company’s 6-month return is down 12%, and YTD performance shows a 19% decline. On a yearly basis, the share price of the company has dipped marginally by 0.7%.