Polycab India shares gained on Thursday, March 13, after the company said it has executed an agreement with BSNL for Bharat Net in the Bihar Telecom Circle for ₹3,002.99 crore.

The company will be the project implementation agency for design, supply, construction, installation, upgradation, operation and maintenance of middle mile network of Bharat Net.

The work will involve three years of construction and 10 years of maintenance. Of this, it will be 5.5% per annum of the capex for the first five years and 6.5% per annum of capex for the next five years.

The contract includes ₹1,549.66 crore capex, ₹929.79 crore opex and ₹523.53 crore opex for existing network, totalling to ₹3002.99 crore.

Last week, brokerage firm Morgan Stanley gave the stock an “overweight” rating with a target price of ₹7,395 per share. Morgan Stanley is one among the 25 analysts tracking Polycab who have a “buy” or equivalent rating on the stock.

Citing takeaways from the Polycab management’s roadshow, Morgan Stanley said there is a strong demand uptick in the cables and wires space in the fourth quarter so far, and the company’s exports are shaping up well.

Polycab shares ended the previous trade session 1.98% higher at ₹5,005 per share. The stock was up 0.2% at 5,018.65 apiece at 11.50 am on Thursday, March 13. It has declined 31.64% this year, so far.

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