{
  "type": "article",
  "title": "Polycab Shares Rattled by UltraTech's Entry, but Jefferies Sees Room for a 34% Rebound",
  "summary": "Polycab shares fell nearly 10% after UltraTech Cement entered the wire and cable business, but Jefferies India has issued a BUY rating, projecting up to a 34% rally in the stock.",
  "content": "Polycab India's stock has slipped nearly 10 percent over the past few trading sessions, but brokerage firm Jefferies India is calling the dip a buying opportunity rather than a warning sign. Jefferies has retained a BUY rating on Polycab and expects a sharp rally in the stock in the months ahead, arguing that the sell-off has more to do with sentiment than with the company's underlying business.\n\nUltraTech's entry behind the sell-off\nThe weakness in Polycab's shares followed a major move by UltraTech Cement, the Aditya Birla Group company best known for its cement business. UltraTech announced its entry into the wires and cables segment under a new brand called UltraVolt. News of such a large, cash-rich conglomerate stepping into India's wire and cable market immediately triggered worries among investors that existing players, especially market leader Polycab, could see their market share and margins come under pressure. That fear has been the main driver behind the sustained selling in Polycab's stock over the last few days.\n\nA Rs 1 lakh crore market with room for everyone\nJefferies analysts believe the panic is overdone, pointing out that India's wire and cable industry is already a large and fast-growing market. According to the brokerage's estimates, the industry is worth about Rs 1 lakh crore in FY2026, of which roughly a quarter, or about 25 percent, is still controlled by unorganised, smaller local players. On top of that, the industry is expanding at a double-digit pace of 11 to 12 percent every year. Jefferies argues that when a market is this large and growing this fast, there is enough room for a new entrant like UltraTech without it necessarily coming at the expense of the sector's established leaders.\n\nPolycab's grip on the market stays strong\nThe brokerage's note points out that Polycab has long been the undisputed number one player in the wire and cable market. The company's market share has climbed steadily from 18 percent in FY2020 to 30-31 percent in FY2026. Its biggest strengths are a nationwide distribution network and a wide portfolio of more than 15,000 products, neither of which can be built overnight by a new entrant. Cables alone make up 70-75 percent of Polycab's total business, while UltraTech's initial push is concentrated mainly on wires and LT cables. That means the direct overlap between the two companies is narrower, at least for now, than it first appeared.\n\nLower risk than Havells or Finolex\nJefferies also notes that segments such as power transmission and industrial cables typically require a new company to spend two to four years getting its products tested and approved. That long and demanding approval process acts as a kind of protective wall for established players like Polycab. As a result, the brokerage sees Polycab facing lower risk than rivals such as Havells or Finolex, since both of those companies carry a much larger share of wires in their overall business, which is precisely the segment where UltraTech has just begun operating.\n\nUp to 34 percent upside on the table\nBased on all these factors, Jefferies India has recommended buying Polycab shares, saying the recent fall of more than 10 percent has opened up a fresh entry point. The brokerage estimates that Polycab's stock could rise about 34 percent from its current level of Rs 8261.00 to around Rs 11,100. In a more favourable scenario, the brokerage says the stock could rally more than 45 percent to touch Rs 12,000, while in a worse-case scenario it could fall around 20 percent to Rs 6,600. On the NSE, Polycab's 52-week high stands at Rs 10,126.00, while its 52-week low is Rs 6,663.00.\n\nWhat this means for you\nAnyone holding or tracking Polycab stock gets a clear, actionable read from this report, since Jefferies has laid out both an entry level and a target price.\n\n• A potential entry point: After the recent fall, Polycab shares are trading around Rs 8261.00. Jefferies sees this level as an attractive entry point given its projection of up to 34% upside.\n• A target to track: The brokerage has set a target of Rs 11,100. Investors can use this level as a benchmark for booking profits or adding to their holdings.\n• The downside risk: In a best-case scenario the stock could reach Rs 12,000, but in a worse-case scenario it could fall to Rs 6,600, meaning a roughly 20% downside risk still exists.\n• Watch the 52-week range: The stock's 52-week high is Rs 10,126.00 and its 52-week low is Rs 6,663.00, which helps put the current price in context.\n• Sector-wide implications: UltraTech's entry means investors in other wire and cable makers such as Havells and Finolex should also reassess their holdings, even though Jefferies views Polycab as relatively insulated.\n\nWhy this happened\nThe direct trigger for Polycab's stock decline was UltraTech Cement's entry into the wire and cable business, which raised investor fears of fresh competition. Jefferies India has attributed the fall more to sentiment than to any immediate threat to Polycab's actual business.\n\n• Fear of a new entrant: News that a large, well-funded group like Aditya Birla was entering the wire and cable market made investors worry that Polycab's market share could shrink.\n• Market size works in Polycab's favour: Jefferies notes that with the industry worth Rs 1 lakh crore and growing 11-12% a year, there is room for a new player without necessarily hurting existing leaders.\n• Different initial focus: UltraTech is currently concentrating on wires and LT cables, while cables make up 70-75% of Polycab's revenue, so the overlap isn't immediate or direct.\n• Long approval timelines: Getting products approved in segments like power transmission and industrial cables takes a new entrant two to four years, buying established players like Polycab valuable time.\n\nQuestions & Answers\n\n1. Why did Polycab shares fall?\nPolycab shares fell nearly 10% after Aditya Birla Group company UltraTech Cement announced its entry into the wire and cable business under the UltraVolt brand.\n\n2. What rating has Jefferies India given Polycab?\nJefferies India has given Polycab a BUY rating and expects a sharp rally in the stock going forward.\n\n3. What is Polycab's target price?\nThe brokerage estimates Polycab's stock could rise about 34% from its current level of Rs 8261.00 to around Rs 11,100.\n\n4. How high or low could the stock go in the best and worst cases?\nIn a better scenario the stock could rally more than 45% to Rs 12,000, while in a worse-case scenario it could fall 20% to Rs 6,600.\n\n5. What is Polycab's current market share?\nPolycab's market share has risen from 18% in FY2020 to 30-31% in FY2026.\n\n6. What are Polycab's 52-week high and low?\nOn the NSE, Polycab's 52-week high is Rs 10,126.00 and its 52-week low is Rs 6,663.00.\n\n7. How big is India's wire and cable market?\nAccording to Jefferies, India's wire and cable market is worth about Rs 1 lakh crore in FY2026 and is growing at 11-12% a year.\n\n8. Why is Polycab seen as less risky than Havells or Finolex?\nHavells and Finolex have a larger share of wires in their business, which is exactly the segment UltraTech has entered, while most of Polycab's revenue comes from cables.",
  "url": "https://trendkia.com/en/market/ultratech-ki-entri-se-hile-polycab-ke-sheyara-brokareja-ne-ginai-34-kamai-ki-ummida-29395",
  "category": "Market",
  "publishedAt": "2026-09-08",
  "tags": [
    "Polycab",
    "Jefferies India",
    "UltraTech Cement",
    "Wire and Cable Market",
    "Stock Market",
    "Buy Rating",
    "UltraVolt"
  ],
  "language": "en",
  "site": "TrendKia"
}