Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo


Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Join an expert panel for a webinar on Smart investments for a secure retirement January 28, 2021. Register now!

Buy Polycab India; target of Rs 1247: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Polycab India has recommended buy rating on the stock with a target price of Rs 1247 in its research report dated January 04, 2021.

January 14, 2021 / 08:53 PM IST
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on Polycab India

We estimate 13% and 24% CAGR in sales of B2C wires and FMEG which will increase sales contribution mix (currently at 40%) to ~50% over next 5 years. Increase in scale of operations and improved mix will improve FMEG margins by 600bps over FY20-23. We estimate Sales/PAT to grow at a CAGR of 16.7%/ 15% over FY21-23E led by 14.4% and 28.8% sales CAGR for wires and cables and FMEG segments and 30bps margin expansion led by scale/mix. We value the stock on SOTP basis and arrive at a target price of Rs1,247(derived PE of 18x FY23 EPS; W&C/ FMEG valued at 18x/ 25x). Polycab trades at 14.9x FY23 EPS, which is at a premium to Finolex/KEI (12.4x/11.6x), but at a significant discount to ECD players like Havells/Crompton (46.8x/ 35x). Steady increase in B2C mix will likely rerate the stock in long term. We initiate coverage with BUY rating.


We initiate coverage on Polycab with a BUY rating and target price of Rs1,247 on SOTP basis.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jan 4, 2021 03:44 pm

stay updated

Get Daily News on your Browser