Polycab India Ltd., incorporated in 1996, is a mid-cap company (having a market capitalization of Rs 33157.95 Crore) operating in the consumer durables sector.
The main product/revenue segments of Polycab India Ltd. include cables and wires, construction contract revenue, scrap metal, subsidies, export incentives and labor for the year ending March 31, 2022.
For the quarter ended 30-06-2022, the company reported consolidated total revenue of Rs 2780.90 Crore, down -30.25% from last quarter, total revenue of Rs 3986.81 Crore and up 45.92% compared to the same quarter last year. Total income of Rs 1905.81 Crore. The company reported a net profit after tax of Rs 223.82 Crore last quarter.
Polycab maintained its leading position in the organized C&W segment with a market share of over 24%. Moreover, with superior financial strength, expansion of distribution network in Tier 2 and Tier 3 cities and strong brand recall, it is poised to gain market share from non-players. organized in the Wires and FMEG segments. Management has set a revenue target of around Rs 20,000 by FY26, driven by faster and more profitable growth in the B2B segments (FMEG and Retail Wires) and growth leader in B2C activity. The brokerage believes growth will be driven by recovering demand, new product launches, product premiumization and the growing contribution of long-term exports. It values Polycab at 27x FY24E EPS of Rs 103 to arrive at a target price of Rs 2,771/share, giving a 26% upside from the CMP.
The promoters held 68.08% of the company’s capital as of March 31, 2022, while the FIIs held 5.75% and the DIIs 9.18%.
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