Why Are Brokerages Still Bullish On Polycab Despite Near-Term Risks?
Polycab India continues to receive positive support from leading global brokerages following its latest business performance. While analysts acknowledge that the stock's near-term risk-reward appears balanced after a strong rally, they remain constructive on its long-term growth prospects driven by India's power infrastructure expansion, rising capital expenditure and continued leadership in the cables & wires industry.
Both JPMorgan and Jefferies expect Polycab to benefit from structural growth drivers, although investors should monitor export demand and domestic volume recovery over the coming quarters.
Latest Brokerage Views
| Brokerage | Rating | Target Price |
|---|---|---|
| JPMorgan | Overweight | ₹10,000 |
| Jefferies | Accumulate | ₹11,100 (Earlier ₹10,920) |
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Why Analysts Remain Positive
- Polycab has delivered 16 consecutive quarters of double-digit growth in its Cables & Wires business.
- Operating margins have remained consistently strong at around 12–15% EBIT margin.
- India's power infrastructure and capital expenditure cycle continues to support long-term demand.
- Export demand is expected to recover gradually.
- Domestic volume growth is expected to improve over the coming quarters.
What JPMorgan Says
- Maintains an Overweight rating.
- Target Price: ₹10,000.
- Quarterly Cables & Wires performance was largely in line with expectations.
- Near-term valuation appears balanced.
- Export recovery and domestic volume growth remain the key variables to monitor.
What Jefferies Says
- Maintains an Accumulate rating.
- Raises Target Price to ₹11,100.
- Describes Polycab as "A Steady Hand; Delivering Through Cycles."
- Projects approximately 22% EPS CAGR between FY26 and FY29.
- Views the company as one of the strongest beneficiaries of India's power and infrastructure investment cycle.
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Key Monitorables Going Forward
- Recovery in export demand.
- Growth in domestic Cables & Wires volumes.
- Execution of power transmission and distribution projects.
- Commodity price movements affecting margins.
- Continued market share gains in the organised cables industry.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Polycab continues to stand out as one of the highest-quality companies in India's electrical equipment sector. Consistent earnings execution, stable operating margins and structural demand from power, infrastructure and industrial capex support its long-term outlook. While short-term valuations may limit immediate upside according to some brokerages, sustained earnings growth and execution remain the primary drivers for long-term wealth creation.
Related Queries
- Why are brokerages positive on Polycab?
- What is JPMorgan's target price for Polycab?
- Why did Jefferies raise Polycab's target price?
- How does India's power capex benefit Polycab?
- What are the key risks and growth drivers for Polycab?
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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