Polycab India Ltd. share price target

IPO NOTE

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

distributors and over 0.1mn retail touch points 3) strong manufacturing base 4) diversification into premium FMEG segment with presence in fans, lighting, switchgears & switches and 5) likely reduction in working capital due to channel financing. Although FMEG is just 8% of sales, strong brand would enable faster scale up in the coming years. Recent export order of USD137mn for an upcoming refinery is a testimony of quality and growth potential in wires and cable business. Over FY16-18 Polycab has reported Revenue/EBITDA/PAT CAGR of 14%/24%/42% respectively with reported EPS...

distributors and over 0.1mn retail touch points 3) strong manufacturing base 4) diversification into premium FMEG segment with presence in fans, lighting, switchgears & switches and 5) likely reduction in working capital due to channel financing. Although FMEG is just 8% of sales, strong brand would enable faster scale up in the coming years. Recent export order of USD137mn for an upcoming refinery is a testimony of quality and growth potential in wires and cable business. Over FY16-18 Polycab has reported Revenue/EBITDA/PAT CAGR of 14%/24%/42% respectively with reported EPS...

According to Industry estimate, the wire & cable industry is likely to record value CAGR of ~15% FY18-23E to cross | 103,300 crore. We believe PIL being a market leader (18% value market share in the organised cable & wire industry) would be a direct beneficiary of a shift in demand from unorganised to organised category (value market share~34%). This coupled with government initiatives in power & infrastructure would boost the...