Polycab falls 17% as UltraTech’s Ultravolt entry raises wires-market competition fears
Jefferies retained its Buy rating on Polycab, arguing certification barriers, dealer reach and resilient cable demand should limit the impact of UltraTech’s Ultravolt launch. The broker set a Rs 11,100 target, implying about 33% upside.
What happened
Jefferies retained a Buy on Polycab after its shares fell 17% amid UltraTech Ultravolt competition concerns. It sees demand, certification barriers, cable-heavy
Key facts
- 17% stock decline from June 2026 peak
- Rs 11,100 target price
- ~33% implied upside
- 22% PAT CAGR for FY26-FY29E
- 11-12% C&W market CAGR
What changed
Jefferies retained a Buy on Polycab after its shares fell 17% amid UltraTech Ultravolt competition concerns. It sees demand, certification barriers, cable-heavy mix and dealer distribution protecting margins, forecasting 22% PAT CAGR through FY29.
Why this matters
Polycab’s 17% fall reflects entry-risk concerns, while Jefferies’ Buy call and ₹11,100 target suggest the market may be discounting an overly severe competitive impact.
What to watch
- Ultravolt's certification approvals, SKU breadth and manufacturing/capacity disclosures.
- Dealer additions, electrician adoption and availability of Ultravolt products across key states.
- Changes in Polycab's dealer commissions, advertising spend, gross margin and EBITDA-margin guidance.
- Quarterly volume growth and market-share commentary from Polycab, Havells, KEI and RR Kabel.
- Evidence of price discounts or channel inventory build-up in housing-wire categories.