Last Updated : Oct 28, 2020 02:34 PM IST | Source: Moneycontrol.com

Buy Polycab, India; target of Rs 1228: Anand Rathi

Anand Rathi is bullish on Polycab, India has recommended buy rating on the stock with a target price of Rs 1228 in its research report dated October 25, 2020.

Broker Research

Anand Rathi 's research report on Polycab, India


Faster traction in the high margin B2C segments (wires/FMEG) and exports, premiumisation and cost-saving measures led to Polycab’s strong Q2 performance. Controlled WC and a healthy net-cash position (~Rs6.3bn) were other positives. On the faster recovery, we now expect 8%/13% CAGRs in revenue/PAT over FY20-22 with a 14%+ EBITDA margin. Strategic moves (inventory reduction, channel financing, etc) will aid in long-term sustainable growth.


Outlook


Thus, we are positive on Polycab and retain a Buy with a target of Rs1,228 (18x/22x FY22e P/Es for C&W/ FMEG), earlier Rs945. Profitable growth in FMEG will support a re-rating.


For all recommendations report, click here


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First Published on Oct 26, 2020 03:45 pm
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