Synopsis: Three leading brokerages have turned more bullish after a stronger-than-expected quarterly show, with target prices pointing to upside of up to 33% from current levels, backed by strong FMEG and cables and wires growth.
Quarterly earnings season often throws up surprises, and this time it was the fast-moving electrical goods and cables and wires space that stood out. A leading player in the sector posted numbers that beat estimates across the board, prompting several top brokerages to reaffirm their bullish stance on the stock.
3 Brokerages See Up To 33% Upside After Strong Quarterly Show
Nuvama Institutional Equities has maintained its Buy recommendation on Polycab India, with a revised target price of Rs 10,510 which is an upside of 18%. The brokerage said the revision follows a stronger-than-expected performance in the fast-moving electrical goods (FMEG) business, which exceeded its estimates and reinforced its confidence in the company’s earnings outlook.
Nuvama expects Polycab to deliver an 18% compound annual growth in earnings through FY29. It said continued market share gains across key product categories, supported by a wider distribution network and healthy demand, should help the company sustain its growth momentum over the medium term.
JM Financial has maintained a Buy call with a target price of Rs 10,700, implying an upside of 20%. The brokerage said the latest quarterly performance once again reflected the company’s ability to deliver ahead of expectations despite a demanding base.
It said value-led growth across product categories and healthy volume expansion in the cables and wires business continue to support earnings. JM Financial also said Polycab’s execution strength and expanding presence across electrical products should help it maintain its leadership position.
Motilal Oswal has reaffirmed its Buy recommendation with a target price of Rs 11,900, indicating an upside of 33%. The brokerage said the company’s long-term growth story remains intact, supported by its dominant position in the cables and wires market and emerging opportunities in newer businesses.
It expects revenue and profit to grow at nearly 19% annually over the next few years. The brokerage said the solar business is emerging as another important growth contributor after recording a sharp jump in revenue, while continued investments across electrical infrastructure should support demand.
What The Brokerage Views Suggest
Put together, the three reports send a fairly consistent message. None of the brokerages issued a fresh rating – all three maintained their existing Buy calls – but each came away more confident after the quarterly print. Target prices range between Rs 10,510 and Rs 11,900, translating into an upside band of roughly 16% to 33% from current levels, with earlier commentary on the stock suggesting even higher upside of up to 33% in some estimates.
Across all three notes, the common threads are strength in the FMEG segment, steady volume-led growth in the core cables and wires business, and optimism around newer growth avenues such as solar. Motilal Oswal’s target is the most aggressive of the three, driven largely by its expectation that the solar business will become a meaningful contributor going forward. Nuvama’s estimate leans more heavily on FMEG outperformance, while JM Financial’s thesis rests on the company’s ability to keep growing volumes even off a high base.
It is worth noting that these are brokerage estimates based on each firm’s own assumptions and models, and actual price movement can differ depending on execution, demand trends, and broader market conditions. Investors are typically advised to treat such targets as one input among several rather than a guarantee of returns.
About The Company
Polycab India is one of the largest manufacturers of wires and cables in the country, with a growing presence in the fast-moving electrical goods (FMEG) segment covering fans, switches, lighting, and other consumer electrical products. The company has also been expanding into newer businesses such as solar, positioning itself to capture demand across both its industrial-facing segments and the retail consumer space.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
