Global brokerage firm Morgan Stanley has significantly upgraded its price target for Polycab India Ltd. shares, pushing it past the ₹10,000 mark. The new target of ₹10,545 comes with a continued 'overweight' rating, driven by a positive outlook on the company's earnings growth and its dominant position in the cables and wires sector.
Analyst Upgrade and Market Outlook
The revised price target of ₹10,545 represents a substantial increase from Morgan Stanley's previous target of ₹8,707, indicating a 21% hike. This new target implies a potential 13.5% upside from Polycab India's last closing price of ₹9,289.
Morgan Stanley highlighted Polycab's robust competitive standing, asserting it possesses the strongest cables and wires (C&W) franchise in India. Analysts anticipate an improving trend in both domestic volumes and export performance. While the consumer-facing Fast-Moving Electrical Goods (FMEG) business has shown promising delivery, the brokerage noted it requires ongoing monitoring, acknowledging its historical inconsistency.
A key factor underpinning the upgrade is Morgan Stanley's forecast of a 20% compound annual growth rate (CAGR) in earnings for Polycab India over the financial years 2026 to 2029.
Robust Q1 Financial Performance
Polycab India reported a strong financial performance for the first quarter ending June 30, 2026. The company's consolidated revenue from operations surged by 39% year-on-year, reaching ₹8,209.73 crore, compared to ₹5,905.98 crore in the corresponding quarter of the previous fiscal year. However, revenue saw a sequential decline of 7.39% from the March quarter.
Total income for Q1 FY27 also increased significantly, rising 38.90% year-on-year to ₹8,314.65 crore. Consolidated profit after tax (PAT) climbed 32.85% year-on-year to ₹796.65 crore, up from ₹599.70 crore in Q1 FY26. On a quarter-on-quarter basis, PAT experienced a marginal increase of 1.41%.
The company's diluted earnings per share (EPS) also reflected this strong growth, improving to ₹51.94 from ₹39.21 in the year-ago quarter, underscoring Polycab India's solid earnings trajectory.