POWERIND: In-line quarter but valuations overdone; cut to SELL. FY25 Budget Preview: Focus to remain on consolidation. KMB: NIM intact QoQ; higher provisions dull profits. AXSB: Profits subdued despite strong business growth. HAVL: Slow quarter but summer could bring cheer; maintain BUY. KEII: Decent quarter; maintain HOLD. JKCE: Healthy performance but priced in. GLS: Strong margins make up for subdued revenue growth

Quarterly Update Q3FY24

Recommendation: We maintain our HOLD rating on the stock.

Middling Q2 performance with easing capacity constraints; cables revenue healthy but margin lagged peers

We expect Revenue/PAT CAGR of 22%/17% CAGR over FY23-25E with improvement in operating margins to 14.3% in FY25, backed by strong operating leverage. We have upgraded our multiple to 40 X of FY25 EPS of Rs. 138 factoring in strong demand and aggressive growth in the Real Estate sector.

Polycab posted strong Q2FY24 with revenue and PAT growth of 26.6% and 58.9% respectively, YoY. Cables & wires posted YoY revenue growth (volume led) of 28.9%. The FMEG segment posted modest 8.1% YoY growth despite decline in core fans and lights divisions.

Core cables and wires business hampered by lack of capacity; likely to be addressed in coming quarters