Polycab India: Can the multibagger FMEG stock breach Rs 8,000 mark in 2025? 

Shares of Polycab India Ltd are set to end year 2024 on a strong note. The stock has gained 33.29% on a year-to-date basis.
In two years, the stock has nearly tripled with 184% returns. Brokerages are mostly bullish on the outlook of the stock.

Motilal Oswal has a price target of Rs 8,330 for the fast moving electric goods (FMEG) stock.

"Polycab’s cables & wire segment will benefit from strong demand from power T&D, private capex growth, & real estate sector. It is expanding its Gujarat EHV plant by FY26-end and also secured Rs 5,650 crore BharatNet initiative Phase-III contracts for an initial period of 3 years. We project 15 per cent earnings CAGR over FY24-27, said the brokerage.

UBS has a buy call for the multibagger stock with a price target of Rs 8,550.

Brokerage HSBC has a price target of Rs 7750 for the Polycab India stock. Demand environment looking positive for calender year 2025.

"While capacity growth is set to outpace demand growth, still see margin improvement in CY25 led by wires biz," said HSBC

Nuvama Institutional Equities expects the stock to touch a price target of Rs 8,340.

"Exports grew 36% QoQ, contributing 6.1% to topline. Working capital days improved to 44 days (vs 61 days QoQ) on the back of higher payables days. Revenues for 1HFY25, crossed Rs 100bn, highest ever in the history of the company. We have a BUY rating on the stock, basis 48x Dec-26EPS, yielding a price target of Rs 8,340," said Nuvama in its earnings review report.

Key risks to the brokerage's assumptions are deceleration in the Government and private capex spending. Continued demand weakness in the consumer markets hurting Polycab’s FMEG segment. Significant fall in copper prices, leading to fall in revenue growth.

Global brokerage Jefferies has a 'buy' call on Polycab India with a target price of Rs 8,315 per share.

"Growth in the wires business outpaced that of cables. However, operating profit margins were hit by increased competition and changes in the product mix, said the global brokerage. The Fast-Moving Electrical Goods (FMEG) segment posted healthy 18 percent sales growth, but losses in this segment persist," it added.

The FMEG stock closed 1.86% higher at Rs 7284.05 on Monday against the previous close of Rs 7150.90. The stock zoomed 202% in the last three years.

Total 9,340 shares of the firm changed hands amounting to a turnover of Rs 6.77 crore on BSE. Market cap of the firm stood at Rs 1.09 lakh crore in the current session.

Polycab India has a one-year beta of 1, indicating average volatility during the period. Polycab India shares are trading higher than the 5 day, 50 day, 100 day, 200 day but lower than the 10 day and 20 day moving averages. The FMEG stock is neither overbought nor oversold on charts, indicates its RSI at 54.4.

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.