International brokerage company Goldman Sachs said that growth drivers for cable and wire segment remain intact. Recently seen correction is providing investors an opportunity for new entry in this sector. More than half of the C&W segment comes from the domestic market. Fundamentals remain strong in power, infrastructure and real estate constructions. Apart from this, exports also provide an opportunity. Indian cable and wire companies are achieving tractions on low base. Goldman Sachs said that growth possibilities, returns profiles, medium -term outlooks would support its premium valuation.
Polycab and KEI Industries bet
Brokerage has retained its ‘shopping’ rating on the shares of Polycab India with a target price of Rs 6,510. While giving a rating of ‘Neutral’ on KEI Industries, he has repeated its target price of Rs 3,780.
Polycab India has recorded a consolidated net profit of Rs 457.57 crore in the October-December quarter of the current financial year. It was 11 percent more than the net profit of Rs 412.85 crore recorded in the same quarter of FY 24.
City’s bullish and McCweri’s outpar view
City has reiterated the purchase view on the polycab with a target price of Rs 8,600 per share. The company recorded a 20 percent Revenue increase from year to year, lower than estimated. However, due to the normalization of pricing, the wire and cable segment performed well with better margin than expected. EBITDA growth was the major attraction in FMEG business with low damage and estimated.
McWery has set a target of Rs 7,928 per share for this, giving outperform ratings on polycabs. Brokerage highlighted a strategic outlook between FY25 and FY30, approximately 15 percent of the Revenue CAGR. While Revenue remained in line with expectations. Better margin of cable and wire segment was a major positive surprise.
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