Polycab Falls 5% Despite JPMorgan Overweight Rating

shares fell 5% despite JPMorgan maintaining an Overweight rating on the stock with a target price of Rs 10,000. The brokerage said UltraTech's entry into the wires and cables segment is sentiment-negative for Polycab, but it does not expect a meaningful business impact at this stage. JPMorgan noted that UltraTech has spent Rs 888 crore of the Rs 1,800 crore capex approved for the new business. The brokerage expects Polycab's exposure to residential wires, which account for around 30% of Polycab and KEI revenue, to limit the medium-term impact of the new entrant. Meanwhile, Angel One shares rose 5% after the company reported a mixed set of business updates for August. Gross client acquisition increased 19.9% month-on-month and 3.8% year-on-year to 0.57 million, while its client base rose 1.4% MoM and 17.8% YoY to 39.56 million. However, total orders declined 18.7% MoM and 0.3% YoY to 109.50 million, with average daily orders falling 11% MoM and 9.8% YoY to 5.21 million. JPMorgan expects attention to shift back towards sector fundamentals once UltraTech's entry is absorbed, with pricing and channel margins/incentives emerging as key monitorables. The brokerage also highlighted that any meaningful correction towards the three-year trough valuation of 31–32x could present a buying opportunity.