Polycab India Shares Rise 2% After Securing ₹3,002.99 Crore BSNL Bharat Net Contract
Shares of Polycab India Ltd surged nearly 2% on Thursday after the company announced that it has signed an agreement with BSNL for the Bharat Net project in the Bihar Telecom Circle. The project, valued at ₹3,002.99 crore, aims to enhance broadband connectivity in the region.
Stock Performance
Polycab India’s stock gained 1.89%, reaching ₹5,105.75 per share on Thursday, compared to its previous close at ₹5,010.60. A total of 5,838 shares changed hands on the BSE, leading to a turnover of ₹2.94 crore. The company’s market capitalization stood at ₹75,758 crore in the session.
Project Scope & Financials
Under the agreement, Polycab India will act as the Project Implementation Agency (PIA) responsible for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network for Bharat Net.
Breakdown of the ₹3,002.99 Crore Contract:
• Capital Expenditure (Capex): ₹1,549.66 crore
• Operational Expenditure (Opex): ₹929.79 crore
• Opex for Existing Network: ₹523.53 crore
The contract includes a three-year construction phase followed by a 10-year maintenance period. The maintenance will be 5.5% per annum of capex for the first five years and 6.5% per annum for the next five years.
Morgan Stanley’s Bullish Outlook on Polycab
Global brokerage firm Morgan Stanley recently assigned an ‘overweight’ rating to Polycab India, setting a target price of ₹7,395 per share. The brokerage firm highlighted:
• A strong demand uptick in the cables and wires segment in Q4 FY25
• Improved export performance
The Bharat Net project win marks a significant milestone for Polycab India, reinforcing its position as a key player in India’s infrastructure and digital connectivity expansion. With strong growth prospects and a positive outlook from analysts, the company’s stock remains in focus for investors.
