Is Polycab India overvalued or undervalued?

Jun 23 2025 08:02 AM IST
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As of June 20, 2025, Polycab India is considered very expensive with a PE ratio of 44.78 and other high valuation metrics, indicating overvaluation compared to peers and a year-to-date return of -17.32%, suggesting concerns about sustainability.
As of 20 June 2025, Polycab India has moved from expensive to very expensive in its valuation grade, indicating a significant shift in market perception. The company is currently overvalued, with a PE ratio of 44.78, a Price to Book Value of 9.21, and an EV to EBITDA ratio of 29.77. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, which raises concerns about sustainability.

In comparison to its peers, Polycab India’s valuation metrics are notably higher than those of Havells India, which has a PE ratio of 65.39, and KEI Industries at 49.09. Furthermore, the PEG ratio of 3.43 indicates that the stock may not be justified by its growth prospects when compared to Finolex Cables, which has a more attractive PEG of 2.66. Recent performance shows Polycab India lagging behind the Sensex, with a year-to-date return of -17.32% compared to the Sensex's 5.46%, reinforcing the notion of overvaluation in the current market context.
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