Motilal Oswal's research report on Polycab India
Polycab India (Polycab)’s 4QFY24 performance was ahead of our estimates. It reported an EBITDA of INR7.6b (15% above our est.) led by higher revenue growth (12% above est.) and a better margin in the cables & wires segment (15.1% vs. estimated 14.3%). Profit stood at INR5.5b vs. est. of INR4.7b.Management believes that the company’s market share stands at ~25-26% of the domestic organized cables & wires market (vs. 22-24% in FY23). Rural demand has improved, leading to higher sales for FMEG products, which, along with an increase in private sector capex, should boost growth.
Outlook
We raise our EPS estimates by 5% each for FY25 and FY26, considering higher growth in FY24. Reiterate BUY with a TP of INR7,850 (premised on 50x FY26E EPS).
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