POLYCAB.NS Stock Today: Buy Calls, Margin Rebound Lift Shares – February 27
The polycab share price is firm today, trading near record territory as buy calls and talk of margin recovery support sentiment. Shares of POLYCAB.NS last changed hands at ₹8,506, up about 1.9%, after hitting a new 52-week high at ₹8,539.5. Brokerages continue to highlight a ₹9,600 Polycab target price, while management signals normalized inventory and improving spreads into Q4 FY26 as copper and aluminium costs stabilize. With cable and wire stocks rallying, we review price action, valuations, margin drivers, technical levels, and near-term catalysts for India-focused investors.
Price Action and Valuation Snapshot
The stock touched a fresh 52-week high at ₹8,539.5 and was recently at ₹8,506 (+1.89%). Turnover stayed strong with 6.30 lakh shares traded versus a 3.56 lakh average. Price sits well above the 50-DMA ₹7,453 and 200-DMA ₹7,132. YTD gains stand at 10.86%, one-month at 25.72%, and one-year at 81.77%. This momentum keeps the polycab share price in focus for trend followers.
Valuation is rich: P/E 48.95, P/B 11.41, and EV/EBITDA near 32.2. Returns remain robust with ROE 24.97% and ROCE about 39.4%. Balance sheet is light on leverage (debt-to-equity 0.02; net debt/EBITDA below zero). Net margin is 9.73%. Dividend yield sits near 0.41%. Premium looks supported by growth and cash generation, but leaves little room for execution misses.
Margins, Inventory and Input Costs
Management indicates inventory has normalized and margins should recover into Q4 FY26, aligning with buy calls and a ₹9,600 goalpost from brokerages source. Working capital efficiency looks steady with a 56.6-day cash conversion cycle, inventory days near 104, and DSO about 45. If spreads expand as guided, operating leverage could help earnings into FY26.
Copper and aluminium costs have steadied recently, easing raw material volatility. We expect pricing discipline and product mix to support gross spreads if metals remain range-bound. The company’s breadth across wires, cables, and electrical goods helps balance demand pockets. Consistent execution on price pass-through and procurement should anchor the margin recovery narrative into reported Q4 numbers.
Technical Setup and Trade Levels
Momentum is firm, but overbought signals flash. RSI is 72 and MFI 80.6, while Stochastic %K stands at 94.6. Price sits above the Bollinger upper band (₹8,332), hinting at near-term stretch. Immediate resistance is the ₹8,540 high. Intraday support is near ₹8,345, with deeper supports at the 50-DMA ₹7,453 and 200-DMA ₹7,132. The polycab share price may consolidate before any next leg.
ATR is ₹195, so traders can size positions with 1x ATR stops or tighter based on risk. Breakout buyers may trail stops below ₹8,345. Dip buyers can watch the Keltner middle (~₹7,743) or Bollinger middle (~₹7,668) for partial adds. Keep risk per trade modest and avoid chasing strength without a clear setup and exit plan.
Sector Momentum and Catalysts
Cable and wire stocks like KEI Industries and Hitachi Energy are also at 52-week highs, keeping sector sentiment firm source. This backdrop supports flows into leaders. With capex and housing demand aiding electrification, buyers remain active. The polycab share price benefits from this sector tailwind, alongside company-specific execution.
Next earnings are slated for 5 May 2026, where management commentary on margin recovery Q4 and FY27 outlook will be key. Watch government-led power and housing capex, commodity trends, and pricing discipline. Risks include sharp metal price spikes, competitive discounting, and any slowdown in project awards that could impact volumes and spreads.
Final Thoughts
The polycab share price sits near record highs as buy calls, a ₹9,600 Polycab target price, and signs of margin recovery into Q4 FY26 keep momentum intact. Fundamentals show strong returns, low leverage, and solid cash generation, though valuations are premium. For traders, respect overbought signals and size around the ₹195 ATR, using the ₹8,540 area as a tactical gauge. For investors, staggered entries on dips can add margin of safety while preserving exposure to sector strength. Track input costs, order trends, and Q4 commentary on spreads. As always, align decisions with your risk profile and time horizon; this is not investment advice.
FAQs
Why is the polycab share price rising today?
The stock hit a fresh 52-week high at ₹8,539.5 and trades near ₹8,506, up about 1.9%. Brokerages have reiterated Buy, citing normalized inventory and margin recovery prospects into Q4 FY26. Stabilizing copper and aluminium costs and strong sector momentum in cable and wire stocks are also lifting sentiment and volumes.
What is the latest Polycab target price and implied upside?
Recent buy calls highlight a Polycab target price of ₹9,600. From ₹8,506, this implies roughly 12.9% upside if achieved. The gap reflects confidence in margin recovery, steady demand, and disciplined pricing. Investors should also weigh premium valuations and monitor Q4 FY26 commentary before sizing positions.
Is Polycab overvalued at current levels?
Valuation is premium with P/E 48.95, P/B 11.41, and EV/EBITDA near 32. Yet returns are strong (ROE ~25%) and leverage is low. If margins expand as guided, earnings can catch up. A balanced approach is to accumulate on pullbacks while monitoring spreads, order trends, and cash conversion.
Which levels and events should traders watch now?
Key resistance is around ₹8,540. Near support sits near ₹8,345, with deeper support at the 50-DMA ₹7,453 and 200-DMA ₹7,132. ATR of ₹195 helps set stops and position size. The 5 May 2026 results will be crucial for margin recovery Q4 updates and FY27 guidance.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.