With robust cable demand and FMEG turnaround, analysts remain bullish on India’s wire market leader
Polycab Touches All-Time High Amid Market Rally
Polycab India Ltd shares surged 2% intraday on Friday, hitting a record high of ₹7,788 on the BSE. The company’s market cap now stands at ₹1.16 lakh crore, reinforcing its status as a multibagger stock with 851% gains in five years and 195% returns in the last three years.
- Turnover: ₹7.02 crore
- Volume: 9,075 shares traded
- Beta (1-Year): 1.1, indicating moderate volatility
Technical View: Poised for a Breakout?
Polycab is currently trading above all key moving averages — 5, 10, 20, 30, 50, 100, and 200 days — signaling bullish momentum. The Relative Strength Index (RSI) stands at 65.4, suggesting the stock is neither overbought nor oversold.
- Support: ₹7,550
- Resistance: ₹7,800
- Short-Term Range: ₹7,500–₹8,000
- A decisive breakout above ₹7,800 could trigger a rally toward ₹8,000 and beyond.
Why Analysts Are Bullish on Polycab
Multiple brokerages have reaffirmed positive outlooks on Polycab India, citing strong demand trends and an improving margin profile across core business segments.
1. Cables & Wires (C&W) Market Dominance
- Polycab has expanded its organised cables market share to 27% in FY25.
- Demand is being fueled by:
- Power and infrastructure expansion
- Emerging sectors like EVs, data centers, and real estate
- Government capex and smart city initiatives
2. FMEG Segment Turns Profitable
- The Fast-Moving Electrical Goods (FMEG) segment turned profitable after 10 quarters, boosting investor confidence.
- Q1 performance was especially strong, driven by solar product sales and premium product offerings.
3. Strong Domestic & Export Strategy
- Focus on scaling exports, along with deepening reach in domestic markets, enhances revenue diversification.
- Backed by a robust infrastructure of:
- 23 manufacturing facilities
- 15+ offices
- 25+ warehouses across India
Price Targets: Analysts See Further Upside
| Brokerage | Rating | Target Price (₹) | View |
|---|---|---|---|
| Motilal Oswal | Buy | ₹8,750 | Highest target |
| YES Securities | Add | ₹8,070 | Valued at 40x forward PE |
| Anand Rathi | Buy | ₹7,948 | Focus on premiumisation |
| Jefferies | — | ₹7,150 | Conservative outlook |
Consensus View: Buy on dips; long-term potential intact
Multibagger Status: A Testament to Consistency
Polycab’s consistent performance, strong fundamentals, and alignment with India’s capex and electrification themes make it a top pick for long-term investors:
- 5-Year Return: +851%
- 3-Year Return: +195%
- 1-Year RSI & Volatility: Reflect healthy investor interest and price stability
Polycab India continues its stellar run, hitting a record high of ₹7,788 amid a broader market rally. Analysts remain bullish with targets as high as ₹8,750, citing robust C&W demand, a profitable FMEG turnaround, and strategic positioning in emerging sectors. With strong technicals and long-term tailwinds, the stock remains a compelling buy-on-dips candidate.
