Polycab shares in focus after securing Rs 6,448-crore BharatNet contract from BSNL

Polycab shares will be in focus on Wednesday after the company announced it has secured a contract worth Rs 6,447.54 crore from Bharat Sanchar Nigam Limited (BSNL) under the BharatNet project. The contract appoints Polycab India as the Project Implementation Agency (PIA) for network development in Karnataka, Goa, and Puducherry.

The agreement, part of Package 4 of the amended BharatNet programme, includes the design, supply, construction, installation, upgradation, operation, and maintenance of middle-mile network infrastructure.

According to the company’s stock exchange filing, the total contract value includes a capital expenditure (capex) of Rs 3,741.92 crore, operational expenditure (opex) of Rs 2,245.15 crore for the newly constructed network, and Rs 460.47 crore for the existing network—all inclusive of GST.

The project involves a three-year construction phase followed by a 10-year maintenance period. Maintenance charges will be billed at 5.5% of the capex annually for the first five years and 6.5% per annum for the remaining five years.

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Polycab shares target price

As per Trendlyne data, the average target price of the stock is Rs 6,751, which shows an upside of 12% from the current market prices. The consensus recommendation from 28 analysts for the stock is a ‘Buy’.
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Polycab shares technical indicators

Polycab’s Relative Strength Index (RSI) stands at 54.8, suggesting neutral momentum. An RSI below 30 indicates an oversold stock, while a reading above 70 signals overbought conditions. The MACD is at 94.6—above the centre line, but below the signal line.

The stock is currently trading below its 5-day, 10-day, 150-day, and 200-day simple moving averages (SMAs), but remains above the 20-day, 30-day, 50-day, and 100-day SMAs.

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Polycab shares performance

Polycab shares have gained 20% over the past three months but are down 15% over the last 12 months. The company’s market capitalisation stands at Rs 90,894 crore.

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