Buy Polycab India: target of Rs 2050: Sharekhan

Sharekhan's research report on Polycab India

Polycab has outlined a five-year roadmap to achieve revenues of Rs 20,000 crore in FY26E with a greater focus on brand positioning, operations and business growth and strong emphasis on governance and sustainability outpacing industry growth. A strong balance sheet and net cash position provide comfort in the present environment. The company’s strong focus on expanding its distribution (currently at 4,100 dealers/distributors) will help deepen its presence in semi-urban and rural markets. The management highlighted that it expects Q2FY22 to be better than Q1 and H2FY22 to be better than H1FY2022.

Outlook

We retain a Buy on Polycab India Limited (Polycab) with a revised PT of Rs. 2050, given a rise in demand in underlying user-industries and strong growth outlook.

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