Anand Rathi Eyes Polycab India Rally: Buy Rating, ₹9073 Target

INDUSTRIAL-GOODSSERVICES

Overview

Anand Rathi maintained a BUY rating on Polycab India, lifting its 12-month target price to ₹9,073 from ₹8,868. The brokerage cited strong Q3FY26 revenue and earnings growth, driven by robust execution in Wires & Cables and sustained FMEG profitability. Despite near-term margin pressures from commodity inflation, the company's robust demand, capacity utilization, and scaling FMEG business position it for market share gains and value creation.

Analyst Outlook

The brokerage anticipates sustained growth and gradual margin recovery for Polycab India, positioning the company for continued market-share gain and long-term value creation. This optimism stems from robust underlying demand across the capital expenditure and real estate sectors.

Operational Strengths

Polycab India's Q3FY26 performance highlighted strong execution in its Wires & Cables (W&C) segment and sustained profitability within its Fast Moving Electrical Goods (FMEG) divisions. The company is benefiting from higher capacity utilization and has Q4-ready inventories, coupled with disciplined capital expenditure plans. The scaling of its solar-led FMEG operations further bolsters its growth trajectory.

Valuation Rationale

Anand Rathi maintained its BUY rating, revising the 12-month target price to ₹9,073 from ₹8,868. The valuation is now based on 38 times the estimated FY28 earnings per share (EPS) of ₹239, a slight adjustment from the previous 40 times FY27e EPS of ₹222. This reflects continued confidence in Polycab's future profitability and market positioning despite near-term margin pressures from sharp commodity inflation and a strategic, staggered price pass-through approach.

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