Polycab India Ltd. share price target

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...