Nuvama Research has reaffirmed its ‘Buy’ rating on Polycab after a recent meeting with management, including CFO Gandharv Tongia and Head of Investor Relations Chirayu Upadhyaya. Despite challenges in Q1 FY25, such as channel destocking and export weakness due to distribution restructuring in key markets, Polycab’s long-term growth drivers remain strong.
Management remains confident in maintaining the company’s industry-leading position and is working on an updated version of its LEAP strategy. They have reiterated guidance for maintaining EBITDA margins between 12-14 per cent. Nuvama expects Polycab’s revenue, EBITDA, and PAT to grow at a CAGR of 17 per cent, 19 per cent, and 17 per cent, respectively, from FY24 to FY27. Consequently, the target price has been revised to ₹8,340, based on projected Q2 FY27 earnings.