Polycab India Ltd is Rated Buy by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO assigned Polycab India Ltd a 'Buy' rating on 21 July 2025, reflecting a significant improvement in the company’s overall assessment. The Mojo Score increased by 17 points, from 61 to 78, signalling enhanced confidence in the stock’s prospects. This rating indicates that the stock is expected to deliver favourable returns relative to its peers, supported by strong fundamentals and positive market trends. Investors should view this as a recommendation to consider adding or holding the stock within their portfolios, given its robust outlook.

Here’s How Polycab India Ltd Looks Today

As of 23 February 2026, Polycab India Ltd continues to demonstrate strong performance across multiple parameters. The company’s market capitalisation remains in the large-cap segment, reflecting its established position within the electrical cables sector. The stock has delivered impressive returns over various time frames, with a one-year return of 35.97%, significantly outperforming the broader BSE500 index in each of the last three annual periods. This consistent performance underscores the company’s resilience and growth potential.

Quality Assessment

Polycab India Ltd holds an excellent quality grade, a testament to its strong operational and financial health. The company boasts a long-term average Return on Equity (ROE) of 20.31%, indicating efficient utilisation of shareholder capital to generate profits. Net sales have grown at an annualised rate of 27.66%, while operating profit has expanded even faster at 32.93%, signalling robust top-line and bottom-line growth. Additionally, the company maintains a low average debt-to-equity ratio of zero, highlighting a conservative capital structure and minimal reliance on debt financing. This financial prudence enhances the company’s stability and reduces risk for investors.

Valuation Perspective

The valuation grade for Polycab India Ltd is rated as fair. While the stock’s price reflects its growth prospects, it remains reasonably priced relative to its earnings and sector peers. This balance between growth and valuation suggests that the stock offers attractive entry points for investors without being excessively stretched. The fair valuation supports the 'Buy' rating by indicating that the stock is not overvalued despite its strong fundamentals, making it a compelling option for medium to long-term investors.

Financial Trend and Recent Performance

The company’s financial trend is positive, supported by a series of strong quarterly results. Polycab India Ltd has reported positive earnings for the last four consecutive quarters, with the latest six-month Profit After Tax (PAT) reaching ₹1,307.15 crores, reflecting a growth rate of 45.66%. The Return on Capital Employed (ROCE) for the half-year period stands at an impressive 32.18%, while quarterly net sales hit a record high of ₹7,636.13 crores. These figures highlight the company’s ability to sustain growth momentum and generate healthy returns on invested capital.

Technical Outlook

From a technical standpoint, Polycab India Ltd is mildly bullish. The stock has shown positive price momentum with a one-day gain of 0.61%, a one-week increase of 3.01%, and a one-month rise of 10.56%. The six-month return of 9.53% and year-to-date gain of 2.54% further reinforce the stock’s upward trajectory. This technical strength complements the fundamental analysis, suggesting that the stock is well-positioned to maintain its positive trend in the near term.

Institutional Confidence

Institutional investors hold a significant stake in Polycab India Ltd, with 25.95% of shares owned by these entities. Institutional holdings often indicate confidence in a company’s fundamentals, as these investors typically conduct thorough due diligence before committing capital. Their involvement provides additional validation of the company’s prospects and can contribute to stock price stability.

Market Standing and Rankings

Polycab India Ltd ranks among the top 1% of companies rated by MarketsMOJO across a universe of over 4,000 stocks. It holds the 12th position among large-cap companies and ranks 48th across the entire market. This elite standing reflects the company’s superior financial health, growth potential, and market performance relative to its peers.

What This Rating Means for Investors

For investors, the 'Buy' rating on Polycab India Ltd signals a favourable opportunity to participate in a company with strong fundamentals, consistent growth, and positive market sentiment. The excellent quality grade assures investors of the company’s operational efficiency and financial discipline. The fair valuation suggests that the stock is attractively priced relative to its earnings potential, reducing the risk of overpaying. Positive financial trends and mild technical bullishness further support the stock’s potential for capital appreciation.

Investors should consider this rating as an endorsement of Polycab India Ltd’s ability to deliver sustainable returns over the medium to long term. However, as with all investments, it is prudent to monitor market conditions and company developments regularly. The stock’s strong institutional backing and high market ranking add layers of confidence, making it a noteworthy candidate for inclusion in diversified portfolios focused on growth and stability.

Summary

In summary, Polycab India Ltd’s current 'Buy' rating by MarketsMOJO, last updated on 21 July 2025, is supported by a comprehensive set of positive indicators as of 23 February 2026. The company’s excellent quality, fair valuation, positive financial trend, and mild technical bullishness combine to present a compelling investment case. With strong returns and institutional confidence, Polycab India Ltd remains a key player in the electrical cables sector and a stock worth considering for investors seeking growth opportunities in large-cap stocks.

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