Polycab India’s growth to be driven by high infrastructural spends

We hosted Mr Chirayu Upadhyaya – Head (Investor Relations). He stated that growth in renewable power capacities and infrastructure development is expected to boost demand for cables (domestic and export markets) while continued uptick in residential real estate is expected to boost demand for Wires in the domestic market.

The management expects to reap benefits post the aggressive marketing done during the ICC Cricket World Cup’23. Etira, Optima and Green Wires continue to gain good traction.

Cable consumption is ~2-4% of the entire project cost for infrastructure projects and ~15-20% for power and transmission related projects. Polycab India accounts for ~15% of the entire copper consumption in India.

We maintain Accumulate with a target price of Rs 5,625 (40 times price to earning on Q2 FY26E earning per share). We remain structurally positive about the Polycab long-term business outlook due to sectoral tailwinds in the wire and cable business, the management’s superior execution capabilities, continued margin expansion due to operating leverage benefits and a better product mix. BQ Prime