ICICI Direct's research report on Polycab India
Polycab is the largest manufacturer of wire & cable in India. The company also entered the fast moving electrical goods (FMEG) space in 2014 and has recorded strong segment revenue CAGR of 43% in the last five years. Polycab is the market leader in the wire & cable business with organised market share of 23%. In the FMEG segment, it is growing through new product launches and dealer addition across India. The company has ~4100 dealers, serving.65 lakh retail outlets Robust b/s with RoE, RoCE of 19%, 26%, respectively, (three-year average)
Outlook
We revise our rating on the stock from HOLD to BUY We introduce FY24E estimates, roll over our valuation on FY24E and value Polycab at Rs 2710 i.e. 30x P/E on FY24E EPS.
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