Polycab India Limited Fair Value
POLYCAB · Capital Goods · Current price ₹8,219
Is Polycab India Limited undervalued?
We estimate the fair value of Polycab India Limited at ₹14,268 per share, against a market price of ₹8,241. That puts the share price about +73.1% below our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Fair multiple (P/E) (₹14,268). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Polycab India Limited spans ₹12,841 to ₹15,695. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
How we got this fair value
Every number below is part of the same estimate for Polycab India Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹12,841 – ₹15,695
Why this method for this business
Polycab is a capital-intensive business with strong EBITDA margins and a durable moat, making EV/EBITDA and relative P/E the most appropriate models. DCF is less suitable due to the cyclical nature of the industry and the difficulty in forecasting cash flows.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
required inputs missing
- dcf: less suitable for a cyclical industry with uncertain cash flows
- peer-based P/E: not sufficient for a capital-intensive business with strong fundamentals
What was missing
- Lack of forward EBITDA estimates
- Limited analyst coverage for EV/EBITDA normalization
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 53.36×
- Peers used
- 4
- EPS (TTM)
- 190.24 ₹/share
- Own-history median P/E
- 37.84×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- +8.6%
- Term: growth
- +40.0%
- Term: capital_allocation
- +10.9%
- Term: financial_strength
- +8.0%
- Term: history
- -8.7%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 72/100 (high, stable returns) → premium
durable ~26% CAGR (ROCE 27% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: market paid -29% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +40.6%
- Fair-multiple confidence
- 77%
- Fair P/E
- 75×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Polycab India Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Polycab India Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.