Goldman Sachs downgrades Polycab, cuts target prices significantly

Goldman Sachs has downgraded Polycab India Ltd. to "neutral" from "buy" and cut its price target by 23% to ₹5,005. The firm also reduced KEI Industries' target by 17% to ₹3,130 while maintaining a "neutral" rating. The downgrade comes as both companies face increased competition and supply in the cables and wires sector. Goldman Sachs noted that Polycab and KEI are trading at high price-to-earnings ratios, prompting a wait for better entry points. Following the announcement, other brokerages like Jefferies and UBS also lowered their price targets for Polycab and KEI Industries. Despite this, Polycab shares rose 1.07% and KEI shares increased by 2.78% on March 17.