Archive · 9 Oct 2026
Jefferies Names Polycab, Finolex Cables as Top Picks
Jefferies is a financial firm that looked at companies making cables and wires in India.
It named Polycab and Finolex Cables as its top choices in the sector.
Jefferies thinks Polycab’s share price could rise to Rs 11,100 from the cited Rs 8,216.
It gave Finolex Cables a target of Rs 1,410, which it called only a small potential gain.
The firm expects both companies’ sales to grow by 18%-20% in the second quarter of the 2027 financial year.
It says demand from power projects and real estate is helping the industry, with data centers and solar also emerging as sources of demand.
Copper and aluminium have become more expensive, but companies have largely passed those costs on to customers.
New competitors, slower construction and changing raw-material costs could still create challenges.
Jefferies named Polycab and Finolex Cables as its preferred picks in India’s cables and wires sector.
It set a Polycab target price of Rs 11,100, implying 35% upside from the cited price of Rs 8,216.
Jefferies set a Finolex Cables target price of Rs 1,410, which it described as implying marginal upside.
The brokerage expects 18%-20% sales growth for both companies in Q2FY27, supported by higher prices and healthy demand.
Jefferies cited raw-material volatility, construction slowdown and competition as risks, while noting that companies have largely passed on higher input costs.
- Who
- Jefferies, Polycab and Finolex Cables; the report also discusses new entrant Ultravolt.
- What
- Jefferies named Polycab and Finolex Cables as its top picks in the cables and wires sector and issued price targets for both.
- When
- The report discusses expected sales growth in Q2FY27 and industry conditions including price changes over the previous 12 months.
- Where
- India.
- Why
- Jefferies cited healthy demand and companies’ ability to pass on higher input costs, while identifying industry and company-specific risks.
Jefferies’ positive case
Risks and competitive pressures
Demand and growth
Jefferies’ positive case
Jefferies sees healthy demand from power and real estate, with data centers and solar emerging as additional drivers; it expects 18%-20% Q2FY27 sales growth for Polycab and Finolex Cables.
Risks and competitive pressures
The report identifies slower construction, weaker demand in cables and wires or FMEG, and lower traction in new products as risks to company growth.
Input costs
Jefferies’ positive case
Jefferies says higher copper and aluminium costs have largely been passed on to consumers without major demand disruption.
Risks and competitive pressures
Raw-material volatility and delays in passing on cost increases remain risks, particularly for Polycab; the report also notes supply-chain risks for Finolex.
New competition
Jefferies’ positive case
Jefferies says established players may expand their product ranges into new applications and niche categories.
Risks and competitive pressures
Ultravolt’s entry adds competition, while Jefferies notes that technical requirements and lengthy approvals make expansion into high- and extra-high-voltage cables challenging.
- Polycab target
- Rs 11,100 per share, implying 35% upside from the cited current price of Rs 8,216.
- Finolex Cables target
- Rs 1,410 per share; Jefferies described the implied upside as marginal.
- Q2FY27 sales outlook
- Jefferies expects 18%-20% sales growth for both companies.
- Channel inventory
- Estimated at around 35-40 days and described as largely normal.
- Input-price changes
- Copper prices rose 38% and aluminium prices 16% over the previous 12 months; Jefferies estimates industry price hikes of 20%.
- Industry size and outlook
- The Indian cables and wires industry is estimated at Rs 90,000 crore and is expected to grow four times by 2035.
- Ultravolt
- The Aditya Birla Group’s sector entrant, housed under UltraTech Cement, was described as the second-largest wires player by capacity at launch.