Brokerage firm Prabhudas Lilladher has issued a price target of Rs 10,764 for Polycab India, citing the company's strong market share in the wires and cables sector. Investors are tracking whether this momentum can continue despite rising competition from new entrants like UltraTech Cement's 'Ultravolt' brand.
Prabhudas Lilladher has maintained a positive outlook on Polycab India, assigning a target price of Rs 10,764 to the stock. This projection is based on a valuation model using a 40x price-to-earnings multiple of the company's estimated earnings for the 2028 financial year. The brokerage's confidence stems largely from Polycab’s success in growing its share of the organized wires and cables market, which is projected to reach 30-31% by FY26.
The core of this growth narrative is the company's extensive distribution network, which handles approximately 90% of its sales. The cables segment, which accounts for nearly 70% of the total business, continues to benefit from steady demand in both the residential and commercial real estate sectors. Financial data from the first quarter of fiscal year 2027 shows strong momentum, with domestic wires and cables revenue growing by 42.8% compared to the same period last year. Management has kept the EBIT margin guidance for this segment within the 11-13% range, suggesting confidence in maintaining profitability despite fluctuations in raw material costs.
However, the company faces a more crowded market environment. Competition in the wires and cables space has intensified recently, particularly with the entry of UltraTech Cement under its new brand, 'Ultravolt.' This development is a key monitorable for investors, as increased competition can put pressure on pricing power and market share for existing players. Additionally, while domestic demand remains robust, the company’s international business has seen some challenges, recording a 13% decline in revenue during the first quarter of fiscal year 2027 due to geopolitical factors.
Investors may keep a close watch on how the company manages these competitive pressures and whether its international segment can recover from recent setbacks. The structural demand for cabling, supported by infrastructure and real estate activity, remains a central pillar of the company's growth strategy. The ultimate performance will depend on the company’s ability to balance its aggressive distribution growth with the need to protect margins in a more competitive environment.