The 17 reports from 9 analysts offering long term price targets
for Polycab India Ltd. have an average target of 1089.44. The consensus estimate
represents a downside of -14.81%
from the last price of 1278.80.
Polycab Evolving into a formidable FMEG player ............................................... 4 Story in charts ........................................................................................................ 5 FMEG Premium positioning with focus on large categories ................................ 6 FMEG CAGR of 28.8% over FY21-23 to improve B2C mix ............................... 6 FMEG margins to improve by 600bps over FY20-23E ................................... 8 Fans (40-45% of FMEG sales): Increasing premium offerings ......................... 10 Lighting (20-25% of FMEG sales): Innovation remains a key to success ......... 11 Switches & Switchgears (15% of FMEG sales): Immense growth potential ..... 12...
We retain Buy on Polycab India Limited (Polycab) with a revised PT of Rs. 1,200, given the improvement in demand in underlying user-industries. Strong traction seen in new launches and sales in pan-India residential market is expected to drive the company's housing wires and FMEG segments. Multiple price hike undertaken by the company led by a rise in copper prices to drive C&W; revenues along with underlying healthy demand. Copper volatility is a natural hedge unaffecting margin profile. The company to deepen its presence in semi-urban and rural markets to drive FMEG...
Good Inroads in the FMEG segment With a highly diversified product mix, Cables & Wires accounts for 84-85% of total revenues. It is a market leader with more than 12% market share in the overall wires & cables market and more than 18% market share in the organized market. Over the last five years, Polycab has grown its revenue at a CAGR of 14% outpacing the overall industry growth of ~11%. The company has been improving its mix over the last few years from a relatively commoditized cable and wire business to making inroads in the FMEG (Fast Moving Electrical Goods) segment, which...
Polycab reported stronger than expected numbers led by healthy revival in domesticB2Csegmentandexports.C&W;segmentrevenuesdeclined5%yoy;the decline was lowerthanexpected on account of double digit growth in housing wiresand47%yoygrowthinexports.However,domesticB2Bsegmentdeclined 3040%yoyduetoslowerexecutionininfrastructureprojects.ExcludingDangote revenues (Rs440mn), exports jumped 400% yoy led by increasing presence in exportmarket.Recoveryinrevenuesisalsoaidedbythestrongincreaseincopper prices. FMEG growth of 24.7% yoy was quite higher than our expectations....
Gross margin during the period increased ~180 bps YoY led by better product mix. In addition to this, significant steps to rationalise fixed cost like lower variable pays & incentives and other costs help drive overall EBITDA margin up by 266 bps YoY at 14.8% in Q2FY21. We believe some costs (like travelling, advertising, etc) will get restored with normalisation in business...
Revenues came in at Rs21.1bn, down by 6% YoY, while EBITDA at Rs3.1bn was up 15% YoY but PAT was up by 14% YoY at Rs2.2bn ahead of estimates as outlined in Exhibit 1. CCC days was flat compared to Q4FY20 at 85 days in Q2FY21, but inventory was higher at 96 days compared to 80 days in March 2020 quarter. Cash generated from operations in H1 was Rs7.8bn with a net C&CE; of Rs6.8bn Wires & Cables margins came in higher by 340bps YoY at 13.9% while FMEG margins saw an exponential increase of 470bps YoY to 8.0% in...
We recommend Buy on Polycab India Limited (Polycab) with a PT of Rs. 1,060, given healthy net earnings growth outlook over FY2021E-FY2023E along with attractive valuation. The company reported strong outperformance on OPM and net profit along with double digit y-o-y growth in FMEG and strong improvement in EBIT. Adjusting for tax write back in Q2FY2020, net profit would have risen by 31% y-o-y. Expect H2 to be better than H1 as FMEG continues to witness double-digit growth and C&W; sees improvement with rising infrastructure investments. We expect margins to be aided by various cost initiatives undertaken....
Polycab is India's leading manufacturer of Cables & Wires with an 18% market share in the organised market with a phenomenal distribution reach spanning over 3500 dealers and distributors covering over 1.25lac retail outlets. With a highly diversified product mix, Cables & Wires accounts for 85% of its 88bn Revenues and despite being a late entrant in the FMEG ( Fast Moving Electrical Goods) segment, Polycab has been able to grow this business at a scorching pace of 43% CAGR over the past five years despite operating in a highly competitive landscape. Polycab has successfully transitioned its 20% ROE business from being a B2B business to a B2C business by leveraging its tremendous brand equity through innovative ASP strategies and CRM...
Polycab reported revenues of Rs 976.6 cr in Q1FY21, down 50% y-o-y vs. our expectations of a 67% y-o-y decline. The revenue decline was due to severe impact of covid, however company witnessed good traction in exports in certain geographies. The institutional (B2B) business
Polycab India is a leading manufacturer of cables & wires with a diverse product range catering to industrial and household segments. In 2009 it diversified into EPC business to strategically cater to the C & W requirement of large infrastructure EPC projects.
We initiate coverage on Polycab India with a BUY recommendation with a Target Price of Rs 898. Polycab is a leading manufacturer of Cables & Wires (C&W;) in India (18%/12% market share in organized/overall C&W; segment respectively)
As has been the case for the last few years, subdued demand hasn't stopped Polycab from growing its topline consistently absolute revenue has grown over 30% in the last 2 years while improving quality, profitability operating margins have increased from 10.8% in FY18 to 12.9% in FY20 and debt has come down from over Rs. 800 cr to Rs. 157 cr.. In house manufacturing of wires and cables ensures better quality and short duration of supply coupled with lower product returns.. Constantly evolving product mix in the wires and cables as well as FMEG segment driven by a vast distribution network to...
Focus on export to drive revenue of core business Polycab executed ~| 750 crore worth of export order in FY20 (~| 1100 crore order received from Dangote Group, South Africa). This aided export revenue to grow 3.3x YoY in FY20. The large Dangote order also helped boost confidence of management to explore more business opportunities in export markets. Revenue contribution of export increased from ~3% in FY19 to ~12% in FY20. The management guided export would be ~10% of overall revenue, going forward, as the company is seeing increased traction...
Incorporated in 1996, Polycab India Ltd (Polycab) is the largest manufacturer of cables and wires in India. It also has presence in FMEG segment, offering products like fans, LED lightings, switches, switch gears, solar equipment, luminaires etc. It operates under brand POLYCAB. It is a market leader in wire and cable industry with 18% market share in organized market and 12% of overall industry. It reported revenue of ~`68bn which has grown at a CAGR of 14% over FY16-18 while its EBITDA and PAT has grown at a CAGR of ~23% and ~42% respectively over FY16-18 at ~`7.4bn and ~`3.7bn respectively. Company is coming with an IPO of ~`13.5bn...
Incorporated in 1996, Polycab India Ltd (Polycab) is the largest manufacturer of cables and wires in India. It also has presence in FMEG segment, offering products like fans, LED lightings, switches, switch gears, solar equipment, luminaires etc. It operates under brand POLYCAB. It is a market leader in wire and cable industry with 18% market share in organized market and 12% of overall industry. It reported revenue of ~`68bn which has grown at a CAGR of 14% over FY16-18 while its EBITDA and PAT has grown at a CAGR of ~23% and ~42% respectively over FY16-18 at ~`7.4bn and ~`3.7bn respectively. Company is coming with an IPO of ~`13.5bn...
Polycab India Limited IPO Note Issue Open: Apr 05 Apr 09, 2019, Price Band: Rs. 533 538 (Discount of Rs 53 per equity to the eligible employees), Issue Size: *25,016,944 (Fresh issue of 7,434,944 eq sh + offer for sale of 17,582,000 eq sh), Offer Size: Rs.1333.40 crs 1345.91 crs
