Shares of leading wires and cables manufacturer Polycab India Ltd. jumped nearly 4 percent on Thursday, extending its gains for the ninth day running to trade at an all-time high.
The stock has gained 27 percent over the last nine trading sessions. This is the longest winning streak for the stock in two years. The last instance of the stock gaining for nine days at a stretch was between August 27 - September 8, 2021.
Brokerage firm Citi believes that the company will revise its long-term growth guidance higher on the back of strong demand and execution. It has maintained its buy rating on the stock with a revised price target of Rs 4,800, which implies a potential upside of 11 percent from current levels.
Polycab is also Citi's top pick from this space. The brokerage expects the management to revise the topline guidance to Rs 20,000 crore by financial year 2026.
However, Citi said that revenue growth in the FMCG business was a dampener and it is yet to pick up. "Exports also did well and growth therein not only underlines the large opportunity (in addition to domestic opportunity), but also Polycab’s scale and execution capability," Citi observed.
Polycab India is India’s leading manufacturer of wires and cables and allied products such as uPVC conduits and lugs and glands.
Shares of Polycab are trading 3.8 percent higher at Rs 4,473.
