Polycab valuations correcting to these levels will be a buying opportunity, JPMorgan says

Brokerage firm JPMorgan believes that in case Polycab India Ltd.'s valuations see a meaningful correction, particularly to its three-year trough multiple of 31x - 32x one-year forward earnings, it would present a buying opportunity in the wires and cables company.

JPMorgan has maintained its "overweight" stance on Polycab with a price target of ₹10,000. After Friday's correction, JPMorgan's price target implies an upside potential of 19% for the stock.



Shares of Polycab are down over 7% this week, marking their worst weekly performance since March this year, when the stock had declined 15% during the week that ended on March 13.

Polycab, KEI Industries and other wires and cables companies have been under pressure this week after India's largest cement company,

UltraTech Cement announced a foray into the wires and cables segment with the launch of the "Ultravolt" brand on Thursday with an initial investment of ₹1,800 crore.

JPMorgan wrote in its note that although the official launch from UltraTech is a sentiment negative for the sector, it is unlikely to have a meaningful business impact on Polycab. The brokerage noted that the absolute committed capex so far is only ₹888 crore, which is much lower than the approved ₹1,800 crore figure.

"With UltraTech's primary focus being residential wires, which is 30% of Polycab and KEI's revenue mix, do not anticipate a meaningful medium-term business impact," JPMorgan's note said.

The brokerage added that once UltraTech's entry is digested, the focus will shift back to the sector fundamentals, which remain "reasonably strong."

Among the key factors to monitor for the next few weeks, JPMorgan has highlighted pricing and channel margins, and any potential incentives offered by UltraTech.

35 analysts have coverage on Polycab India, of which 26 have a "buy" rating, eight say "hold", while one has a "sell" rating on the stock. Some analysts such as Nuvama have warned that UltraTech's aggression in the segment could lead to a near-term de-rating for the cables and wires companies.

Shares of Polycab are trading 4.6% lower on Friday at ₹8,398.5. The stock is still up 10% so far in 2026.