Polycab Share Price Target 2024, 2025, 2026, 2027, 2030 Prediction: Buy or Sell?

This post was most recently updated on January 17th, 2024

Polycab India Ltd. is one of the leading manufacturers of cables and wires and fast-moving electrical goods (FMEG) in India. The company has a strong brand presence, a diversified product portfolio, a wide distribution network, and a robust financial performance. In this article, we will look at the Polycab Share Price Target 2024, 2025, 2026, 2027, 2030.

In this blog post, we will analyze Polycab’s business, its competitors, its growth opportunities, its strengths, weaknesses, opportunities, and threats (SWOT), its financials, and the key things to watch out for at Polycab Stock.

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Polycab Share Price Target 2024, 2025, 2026, 2027, 2030

Polycab Share Price Live Chart and History

Polycab Share: Buy or Sell?

Competitors of Polycab Stock

Polycab India Ltd., a prominent player in the wires, cables, and FMEG sectors, competes with several key players both locally and globally. Its notable competitors include:

• Havells India Ltd.: A leading electrical goods company in India, Havells India Ltd. operates in various segments, including cables and wires, switchgear, lighting and fixtures, and consumer durables. As of January 9, 2024, it boasts a market capitalization of Rs. 1,02,726.64 crore, with a share price of Rs. 1,642.00. In FY 2023, the company reported a revenue of Rs. 12,253.60 crore and a net profit of Rs. 1,224.90 crore.
• Finolex Cables Ltd.: Operating under the Finolex Group, Finolex Cables Ltd. is a key manufacturer in India, specializing in electrical and communication cables. With a market capitalization of Rs. 10,875.20 crore and a share price of Rs. 1,042.00 as of January 9, 2024, its FY 2023 revenue and net profit stood at Rs. 3,614.10 crore and Rs. 462.90 crore, respectively.
• KEI Industries Ltd.: A leading provider in India of power cables, control cables, instrumentation cables, house wires, stainless steel wires, and EHV cables. KEI Industries Ltd. has a market capitalization of Rs. 10,125.00 crore and a share price of Rs. 3,375.00 as of January 9, 2024. For FY 2023, the company’s revenue was Rs. 4,693.70 crore, and its net profit was Rs. 301.80 crore.
• Dixon Technologies (India) Ltd.: Recognized as a leading contract manufacturer in India for consumer electronics, lighting products, home appliances, and mobile phones. The company’s market capitalization is Rs. 38,220.00 crore, and its share price is Rs. 6,370.50 as of January 9, 2024. In FY 2023, Dixon Technologies reported a revenue of Rs. 6,788.90 crore and a net profit of Rs. 222.10 crore.

In summary, Polycab India Ltd. operates in a competitive market environment, contending with significant players like Havells India Ltd., Finolex Cables Ltd., KEI Industries Ltd., and Dixon Technologies (India) Ltd.

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Polycab Share Price Target 2024

Polycab Share Price Target 2024: In 2024, Polycab’s share price target is expected to have a range between a minimum of ₹3,612.43 and a maximum of ₹4,361.84.

Growth Opportunity for Polycab Stock

Polycab India Ltd. stands at the cusp of significant growth in the wires, cables, and FMEG sectors, propelled by these key drivers:

• Rising Demand for Power and Infrastructure: India’s growing population, urbanization trends, industrial expansion, and government initiatives like Power for All, Smart Cities Mission, Housing for All, and Bharatmala Pariyojana are fueling a substantial demand for power. This surge necessitates an increased need for wires and cables across various applications such as power transmission, industrial uses, and building infrastructure. A Research and Markets report predicts a robust growth in the Indian wires and cables market, forecasting a CAGR of 15% from 2020-2025, potentially reaching US$ 15.8 billion by 2025.
• Increased Consumer Spending on Branded FMEG Products: The FMEG market in India is set to expand considerably, thanks to higher consumer spending, rising incomes, growing electrification, and a shift in lifestyles and preferences. There’s a noticeable trend towards branded products known for superior performance, durability, safety, and customer service. As per Technavio’s analysis, the Indian FMEG market is projected to grow at a CAGR of 9% between 2020-2024, estimated to hit US$ 21.6 billion by 2024.
• Exploring New Markets and Segments: Polycab is actively exploring new segments and geographic markets, recognizing the potential for growth and profitability. Sectors like data centers, telecom, defense, and electric vehicles (EVs), which demand specialized and high-quality wires and cables, are on the company’s radar. Additionally, Polycab is expanding its international footprint, particularly in the Middle East, Africa, and Europe, where there’s a robust demand for its products.

In summary, Polycab India Ltd. is poised for growth in the wires, cables, and FMEG sectors, thanks to the escalating demand in power and infrastructure, a trend towards branded FMEG products, and its venture into new market segments and geographies.

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Polycab Share Price Target 2025

Polycab Share Price Target 2025: For the year 2025, Polycab’s share price is projected to fall within the range of ₹4,515.54 (minimum) to ₹5,452.30 (maximum).

SWOT Analysis of Polycab Stock

Polycab Stock, a prominent name in the Indian cables, wires, and FMEG industry, presents a dynamic market profile. Here’s an in-depth SWOT analysis:

Strengths:

• Market Leadership: Polycab Stock holds a commanding position and a strong brand reputation in the wires and cables sector.
• Diverse Portfolio and Wide Reach: The company boasts a varied product range and an extensive distribution network.
• Financial Stability: Demonstrated by robust financial performance and healthy return ratios.

Weaknesses:

• Revenue Dependency: A significant portion of the company’s revenue is heavily reliant on the wires and cables segment.
• Limited FMEG Market Penetration: Compared to rivals, Polycab shows lower penetration and brand awareness in the FMEG product line.

Opportunities:

• Infrastructure and Power Demand: The increasing need for power and infrastructure development is likely to boost sales in the wires and cables domain.
• Consumer Trends in FMEG: There’s a growing inclination among consumers towards branded and quality FMEG products.
• New Market Ventures: Potential growth lies in exploring new segments and geographical areas, including data centers, telecom, defense, electric vehicles (EVs), and markets in the Middle East, Africa, and Europe.

Threats:

• Competitive Market Pressure: Polycab faces intense competition and pricing challenges from both organized and unorganized sectors in wires, cables, and FMEG segments.
• Regulatory and Environmental Challenges: The company could encounter financial implications due to regulatory and environmental changes.

Polycab Share Price Target 2026

Polycab Share Price Target 2026: In 2026, Polycab’s share price target anticipates a span from a minimum of ₹5,644.42 to a maximum of ₹6,815.38.

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Polycab Company Financials

Polycab India Ltd. showcases robust financial health, evidenced by its steady growth in key financial metrics over the last five years. The company’s sound financial strategies are reflected in its impressive balance sheet. Below is a concise summary of Polycab’s financial performance, derived from Tofler and Google Finance data:

Financial Overview (FY 2019 – FY 2023):

• Revenue Growth: There has been a consistent increase in revenue, from INR 8,033.08 Cr in FY 2019 to INR 14,073.30 Cr in FY 2023.
• Net Profit Surge: Net profit has seen a significant rise, starting at INR 371.13 Cr in FY 2019 and reaching INR 1,270.00 Cr in FY 2023.
• EBITDA Expansion: EBITDA improved markedly from INR 1,003.32 Cr in FY 2019 to INR 1,999.00 Cr in FY 2023.
• Earnings Per Share (EPS): EPS has shown a notable increase, from INR 24.74 in FY 2019 to INR 84.66 in FY 2023.
• Return on Equity (ROE) and Return on Capital Employed (ROCE): These ratios have shown positive trends, with ROE peaking at 29.62% in FY 2022 and ROCE at 38.71% in the same year.
• Debt Management: The debt-to-equity ratio has consistently decreased, indicating sound debt management.
• Interest Coverage: The interest coverage ratio has improved, showing the company’s strong ability to meet interest obligations.
• Free Cash Flow: There’s been an upward trend in free cash flow, reflecting the company’s solid liquidity position.
• Dividend Payouts: Shareholders have benefited from regular dividends, which have increased over the years.

Summary: Polycab India Ltd. has demonstrated a commendable financial performance, marked by steady growth in revenue, net profit, and EBITDA. The company’s financial stability is further underscored by a healthy balance sheet, efficient debt management, robust liquidity, and consistent shareholder rewards.

Polycab Share Price Target 2030

In the year 2030, Polycab’s share price is projected to have a target range between ₹13,780.33 (minimum) and ₹16,639.10 (maximum).

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Key Things to Watch out for Poly Cab Stock

Polycab Stock, a dominant force in India’s wires, cables, and FMEG sectors, is known for its strong brand, diverse products, expansive distribution, and solid financials. The stock has impressively yielded returns of 107.96% in the last year and 721.22% over five years as of January 9, 2024, per Google Finance data. However, potential investors should be aware of certain factors that could impact its future performance and valuation:

• Tax Evasion Allegations: On January 9, 2024, Polycab Stock experienced a 9.26% drop following tax evasion reports. Mint and Business Today highlighted the Income Tax Department’s discovery of Rs. 200 crore in undisclosed income from the company. While Polycab has denied these claims, asserting compliance with laws and regulations, these allegations could affect investor sentiment and the company’s reputation.
• Competitive Landscape and Pricing Pressures: Polycab faces stiff competition from major players like Havells India Ltd., Finolex Cables Ltd., KEI Industries Ltd., and Dixon Technologies (India) Ltd., in both domestic and international markets. These rivals, with their strong branding, product portfolios, and financial stability, pose challenges to Polycab’s market share and profitability. The company also contends with price competition from unorganized sector products, prevalent in rural and semi-urban markets. Polycab’s ongoing commitment to quality, innovation, and customer service is crucial for maintaining its market leadership.
• Regulatory and Environmental Challenges: Polycab must navigate various regulatory and environmental regulations set by bodies like the Bureau of Indian Standards (BIS) and the Central Electricity Authority (CEA). Adherence to these changing norms, along with environmental, health, and safety standards, is essential but can introduce additional costs and liabilities. The company also risks potential litigation and penalties for non-compliance or regulatory breaches.

Summary: Polycab Stock, a leader in the Indian wires, cables, and FMEG segments, has demonstrated notable financial strength and market returns. However, investors should closely monitor factors such as tax evasion allegations, competitive dynamics, and regulatory challenges that could influence its future trajectory and stock valuation.

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Final Thoughts on Polycab Share Price Target 2024, 2025, 2026, 2027, 2030

Polycab Stock is a great investment option for anyone looking for a market leader in the wires, cables, and FMEG segments in India. The company has a strong brand presence, a diversified product portfolio, a wide distribution network, and a robust financial performance. The company also has several growth opportunities in power and infrastructure, consumer durables, and new segments and geographies.

However, the company also faces some challenges, such as tax evasion allegations, intense competition and price pressure, and regulatory and environmental risks. Therefore, investors should do their research and analysis before investing in Polycab Stock.

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FAQs on Polycab Share Price Target 2024, 2025, 2026, 2027, 2030

What is Polycab Share Price Target 2024?

Polycab share price target in 2024 is expected to have a range between a minimum of ₹3,612.43 and a maximum of ₹4,361.84.

What is Polycab Share Price Target 2025?

Polycab share price target in 2025 is projected to fall within the range of ₹4,515.54 (minimum) to ₹5,452.30 (maximum).

What is Polycab Share Price Target 2026?

Polycab’s share price target in 2026 anticipates a span from a minimum of ₹5,644.42 to a maximum of ₹6,815.38.

What is Polycab Share Price Target 2030?

Polycab share price target in 20230 is projected to have a target range between ₹13,780.33 (minimum) and ₹16,639.10 (maximum).