Shares of Polycab India gained 4% in early deals on Tuesday after global brokerage UBS initiated coverage on the wires and cable maker. UBS has assigned a buy call to the multibagger stock with a price target of Rs 8,550, which implies a potential upside of 28% from Monday's close.
The fast moving electric goods (FMEG) stock gained 3.64% to Rs 6881.40 against the previous close of Rs 6639.30. The multibagger stock has gained 40.58% in one year and risen 177% in two years. The stock zoomed 256% in the last three years.
Total 0.30 lakh shares of the firm changed hands amounting to a turnover of Rs 20.22 crore on BSE. Market cap of the firm stood at Rs 1 lakh crore in the current session.
Polycab India has a one-year beta of 0.8, indicating very low volatility during the period. Polycab India shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages. The FMEG stock is neither overbought nor oversold on charts, indicates its RSI at 51.
UBS referred to Polycab as a "cyclical growth champion" and a beneficiary of a long-term electrification growth.
Polycab also has ample space to grow the revenue share of its Total Addressable Market (TAM) with the Fast Moving Electrical Goods (FMEG) pull being the key.
"Better-than-expected domestic volume growth, domestic market share gains and an export ramp-up are key near-term triggers for Polycab," UBS said.
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.