Shares of Polycab India, KEI Industries,UltraTech Cement gained on Monday despite weak market. Brokerages have maintained buy on Polycab and KEI Industries at lowered target prices. These price cuts follow a sharp sell-off since Thursday’s trading session.
Polycab shares rose 4 per cent as global brokerage Jefferies sees no impact over FY25-27 on the stock after UltraTech’s foray into cables and wires (C&W) space.
Jefferies stated that the medium-term outlook is quite healthy, adding that it expects sales CAGR of 22 per cent and profit CAGR of 28 per cent, driven by orders and improvement in the Fast Moving Electrical Goods (FMEG) segment. It has also emphasised the export opportunity, quoting China 1+ strategy. It has maintained buy rating on Polycab at a lowered target price of ₹6,485 from ₹7,700 earlier.
UBS assigned buy and lowered the target price on Polycab from ₹9,000 to ₹7,700 apiece. The brokerage has also cut the target price on KEI Industries from ₹5,700 to ₹5,000.
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UltraTech recently disclosed that it expects to clock a return on capital employed (RoCE) target over 20 per cent, IRRs of 25 per cent, asset turnover of 5–7x and margins in line with the industry by FY31. It expects revenue split of 60 to 40 between wires and cables, and does not foresee any significant working capital requirement in this business.
Brokerages Motilal Oswal and Nuvama Institutional Equities have maintained buy calls on UltraTech at the target prices of ₹13,700 and ₹11,574, respectively.
UltraTech Cement led the gainers of Nifty 50 constituents, rising 2.82 per cent to ₹10,414 as at 12.25 pm. Polycab stock rose 2.08 per cent on the NSE to ₹4,811.25 as at 12.22 pm. KEI Industries stock traded at ₹3,119, positive by 1.59 per cent, after hitting a high of ₹3,239.90.