Polycab India, which announced its earnings on Wednesday, is on the buy list of a majority of brokerages. The cables and electricals firm has a buy call from Citi, which sees a 40% upside in the stock. It has a target price of Rs 8,600 for the stock. The brokerage said Polycab continues to be its top pick in the consumer durables sector, supported by the normalization of margins in the wires segment. The company’s export momentum is likley to remain strong in Q4FY25. Additionally, Polycab's next 5-year strategic plan is likely to improve its market positioning and growth trajectory.
Brokerage Macquarie has maintained an outperform call on Polycab with a target price of Rs 7928.
Its strategic outlook implies a 15% revenue growth over FY25-30E, Macquarie said adding that worst of margins for the FMEG segment is behind.
The brokerage expects strong demand from the power sector and exports for cables and wires business.
Global brokerage Morgan Stanley has maintained an overweight stance with a target price of Rs 7537.It implies an upside of 23% from the previous close.
The brokerage said cable demand remained healthy but weaker in the copper segment. The brokerage also noted margin improvements driven by the wire business and exports, which continue to bolster the company’s performance.
Jefferies has maintained a Buy call with a target price of Rs 9220.
Net profit in the December 2024 quarter rose 10% to Rs 458 crore against Rs 412.85 crore in the corresponding quarter of the previous fiscal.
Revenue in the last quarter rose 20.4% from last year to Rs 5,226 crore. Operating EBITDA climbed 26% year-over-year to Rs 720 crore. The EBITDA margin stood at 13.8 percent in Q3.
However, total expenses rose sharply by 20 percent from the year-ago period to Rs 4,634 crore.
Polycab India Limited is the country's largest manufacturer of wires and cables. The company's business operations span across India through 23 manufacturing facilities, 15 plus offices and 25 plus warehouses.