6 hours Ago
Motilal Oswal Financial Services has a buy call on Polycab India with a target price of Rs 8,340. The current market price of Polycab India is Rs 7149.1.
Polycab India incorporated in 1996, is a Mid Cap company with a market cap of Rs 107515.75 crore, operating in the Consumer Durables sector. Polycab India's key Products/Revenue Segments include Cables & Wires, Fast Moving?Electrical?Goods (FMEG), Income from Eng.
Construction Contracts, Grants, Export Incentives for the year ending 31-Mar-2024. Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 5574.58 crore, up 17.
20% from last quarter Total Income of Rs 4756.44 crore and up 31.07% from last year same quarter Total Income of Rs 4253.
02 crore. The company has reported net profit after tax of Rs 445.21 Crore in latest quarter.
Investment Rationale Motilal Oswal Financial Services is structurally positive on Polycab due to its leadership position in the cables and wires segment, strong growth trajectory, and healthy return ratios. The brokerage estimates a CAGR of 16%/15% in EBITDA/EPS over FY24-27. Polycab has benefitted from continuous capacity expansions and strategic initiatives toward margin expansion (the margin in the cables & wires segment expanded to 13.
1%/14.7% in FY23/FY24 from 9.9% in FY22 and ~12% over FY18-21).
Motilal Oswal estimates the EBIT margin of this segment to slightly moderate to ~12%/13% in FY25/FY26, attributed to higher RM prices and a lower margin in the wires segment due to higher competitive intensity. The margin is estimated to stand at ~14% in FY27, aided by an increase in contribution from the newly added EHV capacity and growth in exports business. Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder- Indiacharts.
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5 billion over FY25-27, whereas cumulative is likely to stand at INR30.0b in the same period. Cumulative FCF generation over FY25-27 will be at Rs 27.
5 billion, which will further improve its liquidity position. RoE and RoIC are expected to be at 20% and 27% in FY27 vs. an average of 16% and 17% over FY15-24.
We expect the company to maintain its premium valuations. The brokerage reiterates its BUY rating on Polycab with a target price of Rs 8,340 (based on 50x Sep?26E EPS). Promoter/FII Holdings Promoters held 63.
06 per cent stake in the company as of 30-Sep-2024, while FIIs owned 13.48 per cent, DIIs 9.35 per cent.
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