Shares of Polycab India, KEI Industries,UltraTech Cement gained on Monday regardless of weak market. Brokerages have maintained purchase on Polycab and KEI Industries at lowered goal costs. These value cuts observe a pointy sell-off since Thursday’s buying and selling session.
Polycab shares rose 4 per cent as international brokerage Jefferies sees no influence over FY25-27 on the inventory after UltraTech’s foray into cables and wires (C&W) area.
Jefferies acknowledged that the medium-term outlook is sort of wholesome, including that it expects gross sales CAGR of twenty-two per cent and revenue CAGR of 28 per cent, pushed by orders and enchancment within the Quick Shifting Electrical Items (FMEG) section. It has additionally emphasised the export alternative, quoting China 1+ technique. It has maintained purchase score on Polycab at a lowered goal value of ₹6,485 from ₹7,700 earlier.
UBS assigned purchase and lowered the goal value on Polycab from ₹9,000 to ₹7,700 apiece. The brokerage has additionally reduce the goal value on KEI Industries from ₹5,700 to ₹5,000.
- Learn extra: Polycab, RR Kabel, Finolex, KEI Industries, Havells: How UltraTech quick circuited cable shares
UltraTech just lately disclosed that it expects to clock a return on capital employed (RoCE) goal over 20 per cent, IRRs of 25 per cent, asset turnover of 5–7x and margins in keeping with the trade by FY31. It expects income break up of 60 to 40 between wires and cables, and doesn’t foresee any important working capital requirement on this enterprise.
Brokerages Motilal Oswal and Nuvama Institutional Equities have maintained purchase calls on UltraTech on the goal costs 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 inventory rose 2.08 per cent on the NSE to ₹4,811.25 as at 12.22 pm. KEI Industries inventory traded at ₹3,119, optimistic by 1.59 per cent, after hitting a excessive of ₹3,239.90.
