POLYCAB.NS Stock Today: February 26 – Record High on 18% Upside Call
The polycab share price jumped to a fresh record today, with intraday high at ₹8,539.5 and last traded near ₹8,506, up 4.75%. Brokerages stayed positive: Motilal Oswal sees about 18% upside to ₹9,600, while Elara maintains Accumulate with ₹8,180. Management expects Q4 strength, led by wires and cables demand, capex-driven orders, and steady margins from commodity pass-through. For Indian investors, the setup blends strong momentum with premium valuations, making position sizing and entry points key as POLYCAB.NS extends gains.
Record High and Brokerage Calls
Polycab hit a new high at ₹8,539.5, trading around ₹8,506, up ₹385.5 today. The stock is up 24.20% in 1 month and 44.80% over 1 year, outpacing the broader market. Elevated volumes and a rising tape support trend-following interest. Business Standard noted the record run even in a soft market backdrop, with a 21% one-month rally earlier source.
Motilal Oswal projects ~18% upside with a Polycab target price of ₹9,600, citing wires and cables momentum, margin stability, and capex-led demand. Elara maintains Accumulate at ₹8,180. Financial Express highlighted the bullish case, driven by demand visibility and execution source. Near term, fresh highs can invite volatility; staggered entries may help manage risk.
Demand Drivers and Q4 Outlook
India’s housing, infrastructure, renewables, and industrial capex are lifting orders. Stable commodity pass-throughs protect spreads, while channel checks indicate healthy primary and secondary sales. The company’s wide distribution and project capabilities add depth. With peers also firming up, sector momentum remains supportive, though investors should watch ordering cycles from utilities and real estate for confirmation.
Management flagged a strong Q4, backed by execution and favorable mix in the core wires and cables segment. Seasonally, Q4 benefits from project closures and budget-linked spending. Margin support stems from scale, product mix, and efficient raw material pass-throughs. We expect commentary on order inflows, exports, and capacity utilization to be key catalysts into the May 5, 2026 results date.
Valuation, Quality, and Earnings Watch
At ₹8,506, Polycab trades at 48.04x TTM EPS (₹173.78) and 11.20x book, implying premium expectations. Offsetting this, ROE is 24.97%, debt-to-equity is 0.02, and operating margin is 17.14%, indicating quality and low leverage. Dividend yield stands at ~0.42%. Our Meyka Stock Grade is B+ (78.91) with a Buy tilt, but the rich multiple raises sensitivity to execution.
Key watchlist: Q4 revenue growth, margin trajectory, and wires and cables mix. Positive surprises on export scale-up or project wins could justify premium valuations. Conversely, softer institutional orders or commodity swings may compress margins. Earnings are scheduled for May 5, 2026. For valuation discipline, investors may weigh dips toward the 50-DMA (₹7,440) for incremental accumulation.
Technical Setup and Key Levels
Momentum is strong: RSI 72.0 and MFI 80.6 sit in overbought zones. Price is above the upper Bollinger Band (₹8,331.7), showing an extended move. MACD histogram remains positive, while ADX at 23.7 suggests a strengthening trend. ATR of ~₹195 indicates wider daily ranges. These signals favor trend continuation, but they also argue for tighter risk controls.
Immediate support sits near today’s low at ₹8,345, followed by the 50-DMA at ₹7,440 and 200-DMA at ₹7,122. Resistance is the intraday top at ₹8,539.5, then brokerage-implied zones toward ₹9,600. Traders can consider trailing stops below swing lows. Investors may phase entries, using weakness toward support, given the premium valuation backdrop.
Final Thoughts
Polycab’s breakout to ₹8,539.5 reflects strong demand, robust execution, and constructive brokerage calls. The polycab share price now embeds higher expectations, with a premium P/E near 48 and quality metrics that remain solid. Short term, momentum is overbought, so traders should manage risk with defined stops and size. Medium term, demand from housing, infra, and renewables, plus effective commodity pass-throughs, supports earnings resilience. Our take: trend followers can ride the move with trailing stops, while long-term investors may use dips toward moving averages to build positions. Watch Q4 commentary on orders, margins, and exports into the May 5 print.
FAQs
Why is the Polycab share price rising today?
The stock hit a record high after strong wires and cables momentum, positive brokerage notes, and firm sector sentiment. Management expects a solid Q4 with margin support from effective commodity pass-throughs. Together, these factors lifted buying interest and volumes, pushing price above prior 52-week highs despite a mixed broader market.
What are the latest Polycab target price estimates?
Motilal Oswal estimates about 18% upside with a target of ₹9,600, citing demand visibility and margin stability. Elara maintains Accumulate with a target of ₹8,180. These views reflect confidence in execution and the capex cycle, though valuations are premium, so entry discipline and risk controls remain important.
Is the rally supported by fundamentals?
Yes. Polycab shows ROE of 24.97%, low debt-to-equity of 0.02, and operating margin near 17%. Cash generation trends are healthy, and the core wires and cables segment benefits from housing, infra, and renewables capex. The main risk is the premium P/E around 48, which heightens sensitivity to quarterly delivery.
What should traders watch near term?
Track RSI and price relative to the upper Bollinger Band, given overbought readings. Key levels include ₹8,345 (intraday low), ₹7,440 (50-DMA), ₹7,122 (200-DMA), and resistance at ₹8,539.5. Use trailing stops under swing lows. Any change in demand commentary or commodity costs could shift momentum quickly.
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.