Polycab India Ltd. share price target

Maintains high single digit FMEG margin guidance in 2 years; 10-12% by FY26 We cut our FY22 earnings by 13.4% given 1) RM volatility led margin pressure and 2) focus on topline growth and market share gains in the near term. However, thereafter, we expect margins to recover gradually and remain structurally positive on longer term prospects given 1) sustained increase in...

We have increased FY22E/FY23E revenue estimates by 3.4%/4%, respectively. We value Polycab at 25x FY23E EPS of Rs 80 to arrive at a target price of Rs 2000/share, which gives an upside of 5% from the CMP.

We have increased FY22E/FY23E revenue estimates by 3.8%/7.8% respectively. We value Polycab at 25x FY23E EPS of Rs 76 to arrive at a target price of Rs 1900/share, implying an upside of 10% from CMP.

Polycab has set a target to achieve | 20,000 crore revenues by FY26 (18% CAGR) through various strategic initiatives such as strengthening of its B2C product portfolio and maintaining leadership position in the B2B category. On the FMEG front, the company has set a target to expand dealers in top...

Polycab registered another strong quarter with revenues at 3,037 crs growing by 43% YoY and 9% QoQ with growth across business segments and improving share of B2C business. The company has met its guidance of delivering a much better second half with a strong growth. Even when the commodity market is on the rise resulting in higher raw material prices, Polycab has...

Cost rationalisation continues, expect margin to stay elevated While the company faced pressure in gross margin (down ~320 bps YoY), it witnessed savings in other costs, mainly due to various cost optimisation measures in 9MFY21. This helped maintain EBITDA margin at the same level (at ~13%) of Q3FY20. According to the management, Polycab would pass on inflationary pressure along with cost saving measures in coming...

We have marginally adjusted our estimates for FY21E/FY22E by 1.3%/(1.6%) and roll forward the valution to FY23 and arrive at a target price of Rs 1,342 (vs. Rs 1,015 earlier) valuing Polycab at 20X FY22E EPS of Rs 67.1. Maintain BUY.

Festive sales, Distribution reach and market share gains drive Q3FY21 Revenues grew by 11.6% to `28bn driven by strong festive season demand, distribution expansion, a better product mix (rising share of B2C) and pricing actions.Wires & Cables (W&C;) sales was +5.6% YoY to `22.7bn driven by strong traction in wires, exports and improving consumer sentiment. Construction activities are slowly picking up, distribution channels saw healthy double-digit growth however, institutional business continues to face headwinds. Domestic wires grew faster than cables, especially housing...

We increase our FY21/ FY22/ FY23 earnings by (0.9%)/ 2.7%/ 4.4% and reiterate our positive stance on Polycab given 1) increased B2C mix (40% from 33%) 2) strong consumer demand 3) sustained improvements in FMEG margins and 4) distribution expansion. We remain positive on emerging growth opportunity given 1) pick up in renovation/ construction activities 2) distribution expansion 3) 29% 3Q growth in exports (ex Dangote) 4) gains from unorganized sector and 5) launch of IOT based ECD brand HOHM....