Polycab shares may offer more returns despite stellar sectoral rally: SBI Securities

Polycab India may still offer room for investors despite the blistering rally across power and cable stocks, with SBI Securities arguing that the company presents a relatively balanced risk-reward profile at a time when the broader segment has already seen sharp re-rating. The brokerage’s constructive view rests on Polycab’s execution across wires, cables and FMEG, alongside sector-wide tailwinds from commodity trends and infrastructure spending.

A measured pick in a heated sector

After a steep run-up in names such as RR Kabel, Universal Cables and other cable plays, valuation discipline has become a central question for investors chasing the theme. In that backdrop, SBI Securities’ Sunny Agarwal said Polycab is a stock that offers a “moderate risk-reward proposition at the current juncture.”

The preference appears rooted in business breadth. Agarwal said the company continues to deliver across “wire, cables and FMEG,” suggesting that Polycab’s growth engine is not dependent on a single product cycle. That diversification could matter in a market where investors are increasingly rewarding consistency over pure momentum.

Copper prices may create a near-term demand kicker

One of the more important triggers flagged for the sector is the recent rise in copper prices. According to Agarwal, whenever copper sees a sharp uptick, the distribution channel tends to move into advance restocking mode, allowing the benefit to flow through to power and cable companies.

That dynamic is significant because it points to a demand boost that is not purely end-market driven, but also linked to inventory behaviour. For cable makers, such restocking cycles can support volumes and improve revenue visibility in the near term, especially when commodity volatility encourages earlier procurement.

Power capex and data centres widen the opportunity

Beyond the commodity-led trigger, the bigger structural story remains intact. Agarwal pointed to “very robust” capex intensity across the power sector, reinforcing the view that cables and allied electrical products remain direct beneficiaries of India’s infrastructure build-out.

He also highlighted data centres as an emerging opportunity for the entire power and cable space. That is a notable signal for investors, because it expands the sector narrative beyond traditional transmission, distribution and real estate demand into digital infrastructure, where power reliability and high-quality cabling are critical.

Target and investment horizon

SBI Securities has pegged Polycab’s fair value at Rs 11,000 and advised investors to accumulate the stock with a three- to eight-month horizon. In a market crowded with high-beta winners, the call suggests Polycab may be the steadier way to play one of the strongest earnings themes of the season.