Morgan Stanley has increased its price target for Polycab India to over ₹10,000, citing strong earnings growth prospects driven by the company’s dominant position in cables and wires and a favourable long-term outlook amid ongoing infrastructure demand.
Morgan Stanley has turned more bullish on Polycab India, lifting its price target to ₹10,545 from ₹8,707 and backing the company to deliver a 20% compound annual earnings growth rate between FY26 and FY29. The brokerage’s latest note points to Polycab’s scale in cables and wires, saying it sees the company as the strongest franchise in the market and expects both domestic volumes and exports to keep improving. The new target puts the stock comfortably above the ₹10,000 mark.
The call follows a strong first quarter for the company. Polycab reported revenue from operations of ₹8,209.73 crore for the three months to June 30, up 39% from a year earlier, while total income rose to ₹8,314.65 crore. Profit after tax increased 32.85% to ₹796.65 crore and diluted earnings per share climbed to ₹51.94. On a sequential basis, revenue and total income slipped from the March quarter, though profit edged higher.
Business Standard reported that the wires and cables division, Polycab’s biggest segment, remained the main driver of growth, with revenue there rising 37.7% to ₹7,201.79 crore. That performance supported the broader earnings beat and reinforced the market’s attention on the company’s core infrastructure-linked business at a time when demand remains firm across its main categories.
Morgan Stanley’s optimism also reflects a view that the company is still early in a longer earnings cycle. The brokerage expects domestic cables and wires volumes to improve over FY27 and FY28, suggesting that recent growth may not yet be the peak. Polycab’s latest quarterly presentation also showed EBITDA of ₹1,136.2 crore, underscoring the strength of operating performance even after a softer quarter-on-quarter revenue trend.
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