Polycab shares dropped 7% to Rs 8,250 after UltraTech Cement’s Ultravolt launch, but fundamentals remain strong with FY26 revenue Rs 28,800 crore and PAT Rs 2,700 crore.
Analysts project a near‑term support zone at Rs 8,200‑8,300, potential upside to Rs 8,800‑9,000, and a 14% upside to JPMorgan’s Rs 10,000 target.
UltraTech’s Rs 1,800 crore investment could pressure pricing, but Polycab’s scale, distribution network, and Rs 4,000 crore net cash give it a competitive moat.
UltraTech’s Ultravolt Launch & Immediate Market Reaction UltraTech Cement announced its foray into the wires and cables segment on Thursday, unveiling the Ultravolt brand ahead of the planned December 2026 launch. The move prompted a 7% slide in Polycab India shares, falling to an intraday low of Rs 8,250 on the NSE. Analysts attribute the dip to sentiment‑driven concerns over pricing pressure and market share competition, rather than a deterioration in Polycab’s fundamentals.
Polycab’s Fundamentals & Technical Outlook Despite the correction, Polycab’s financials remain robust: FY26 revenue crossed Rs 28,800 crore with PAT exceeding Rs 2,700 crore, while Q1 FY27 revenue rose 39% YoY to Rs 8,210 crore and PAT to Rs 797 crore. EBITDA grew 32% to a margin of 13.8%, reflecting input‑cost pressures. On the balance sheet, net cash stands at Rs 4,000 crore, providing strong financial flexibility. Technically, the stock is below its 9‑day, 20‑day, and 50‑day moving averages, with a key support zone around Rs 8,200‑8,300. If this level holds, a reversal could push the price to Rs 8,800‑9,000; a break below Rs 8,200 may lead to Rs 7,900‑8,000.
Analyst Views & Investment Considerations JPMorgan retains an “Overweight” rating with a Rs 10,000 price target, implying a 14% upside. The brokerage notes that UltraTech’s primary focus on residential wires—about 30% of Polycab’s revenue mix—limits medium‑term impact. Nuvama warns of a potential 150‑250 basis‑point sector de‑rating in the near term. Investors are advised to hold existing positions and consider staggered buying for new entrants, capitalizing on the current correction while awaiting clearer management commentary on UltraTech’s competitive strategy.
Topics:#Polycab#UltraTech Cement#Wires and Cables#Stock Market#Nifty
