POLYCAB
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BofA initiates Polycab, KEI with buy ratings, sees 21% upside
Shares of Polycab India and KEI Industries opened higher on Thursday, August 27, as brokerage firm Bank of America (BofA) initiated coverage on both the wires and cables companies with a 'Buy' rating, saying the stocks could see further gains. BofA has set a target price of ₹11,000 for Polycab, implying an upside of 21.4% from its previous close of ₹9,060. For KEI Industries, the brokerage has assigned a target price of ₹6,300, indicating an upside of 13.7% from its previous close of ₹5,540.
Polycab Q1 results beat expectations
Net profit increased 33% to Rs 797 crore, while EBITDA rose 32% to Rs 1,136 crore. EBITDA margin stood at 13.8%, while net profit margin came in at 9.7%. The company’s W&C business, its largest segment, posted 39% YoY growth, led by a 43% increase in domestic revenue, supported by healthy market demand and execution under Project Spring.
UltraTech's ₹1,800 Crore Wire Entry Slashes Polycab, KEI Shares
UltraTech's launch of its 'Ultravolt' cables and wires business has triggered a sharp sell-off in cable stocks, with Polycab and KEI Industries falling up to 8% on de-rating fears. Analysts are split: JPMorgan sees a buying opportunity at lower valuations, while others question the impact on UltraTech's own shares. The market is also reacting to UltraTech's plans to scale its EV truck fleet, which has given its shares a slight edge.
UltraTech's cables entry shakes wire makers; Equirus sees dip buying
Manoj Gori, Associate Director - Equities at Equirus Securities, said the market has moved past its initial nervousness over UltraTechCement's entry into the wires and cables business. "This overall volume growth for the segment has been very strong for the overall wire and cable space," he said. Rising copper and aluminium prices have pushed up the size of the industry itself, which gives room for a new large player to be absorbed without hurting existing companies, he added.
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