Jefferies Raises Polycab Target Price to Rs 10,920 Amid Growth Surge

Polycab India shares surged up to 4% on Wednesday following a bullish update from international brokerage Jefferies, which reiterated its 'Buy' rating. Despite a significant 30% rally in 2026, the brokerage has raised its target price to Rs 10,920, forecasting a further upside of 14% from current market levels.

Dominating the Organized Cables and Wires Market

A primary driver for Jefferies' optimistic outlook is Polycab's aggressive expansion in the Cables and Wires (C&W) segment. The company has demonstrated remarkable market share gains, with its organized market share climbing to 30-31% in FY26, up from approximately 18% in FY20.

The C&W segment remains the backbone of the company, accounting for nearly 87% of FY26 revenue and delivering 33% year-on-year growth. This growth was fueled by an 18% increase in volumes and 16% price-led growth. Notably, the launch of the 'Etira' brand in tier 2 to tier 5 markets has allowed Polycab to effectively capture market share from unorganized players.

Capitalizing on the Data Centre and Digital Boom

Jefferies identified data centres as a massive emerging growth lever. Data centres require significantly higher cable intensity compared to other sectors; cables account for an estimated 8-10% of total data centre capex, whereas they represent only about 3% in standard industrial projects. Polycab is already strategically positioned in this space, participating in data centre projects for Vodafone Idea through Vertiv, making it a key beneficiary of India's digital infrastructure expansion.

A Robust Order Book and Infrastructure Tailwinds

Polycab maintains a formidable order book, standing at Rs 11,300 crore as of March 2026. A significant portion of this pipeline is driven by government-led initiatives such as RDSS and BharatNet. The BharatNet project alone offers an estimated revenue potential of approximately Rs 8,000 crore (excluding GST).

Looking ahead, the company is expanding its manufacturing capabilities with a new extra-high voltage (EHV) cable plant, which is expected to be commissioned by the end of CY26, with revenue contributions starting from FY28.

Diversified Revenue Streams and Financial Strength

החוסן של החברה נשען על תמהיל הכנסות מגוון מאוד המפחית את סיכון הריכוזיות:

באופן מכריע, Polycab שומרת על ריכוזיות לקוחות נמוכה, כאשר 10 הלקוחות המובילים תורמים רק 21% מסך המכירות.

תחזית רווחים עתידית

Jefferies צופה כי Polycab תניב CAGR מרשים של רווח למניה (EPS) בשיעור של 22% בין FY26 ל-FY29. צמיחה זו צפויה להיות מונעת על ידי צמיחה מתמשכת בנפח המכירות בעסקי הליבה של C&W ושיפור בשולי הרווח במגזר ה-FMEG. למרות קיומם של סיכונים כגון תנודתיות במחירי הנחושת והאטה בביקוש לדיור, חברת הברוקרג' העלתה את מכפיל הערכת השווי שלה ל-41x רווחים.

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