Polycab India Limited

“Polycab is India's dominant wires and cables manufacturer with a genuine distribution moat, clean balance sheet, and a decade-long structural tailwind from infrastructure capex and organised-market consolidation. However, at 48x trailing earnings the stock offers only ~8-12% CAGR in a base case, with a live Income Tax search action alleging over ₹1,000 crore in unaccounted sales that introduces real — not merely theoretical — governance risk. The business deserves to be owned; the current price does not reward the remaining risk. A re-rating to sub-35x P/E or a clean resolution of the IT matter would substantially improve the risk/reward and warrant accumulation.”