Sharekhan's research report on Polycab India
Polycab India Limited’s (POLYCAB)’s annual report reflects the management’s focus on growth through backward integration, a comprehensive product portfolio, strengthening brand positioning, wide distribution network and a robust management. Project Leap (a five -year roadmap) envisages Rs. 20,000 crore revenue by FY26 with 1.5x industry growth. It aims to regain EBITDA margin of 11-13% in W&C and achieve ~12% EBITDA margin in Fast moving electrical goods (FMEG) by FY26. The company sees healthy volume traction across categories and expects healthy topline in the near to medium term. OPM is expected to improve on account of operating leverage, premiumisation and calibrated pricing hikes.
We retain a Buy rating on the stock with an unchanged PT of Rs 3,000 as the valuation (P/E of 23x FY24E) seems compelling given its strong brand equity, healthy net cash (~Rs. 1,100 crore) and aggressive growth plans.
At 15:30 hrs Polycab India was quoting at Rs 2,088.00, down Rs 50.20, or 2.35 percent.
It has touched an intraday high of Rs 2,148.80 and an intraday low of Rs 2,045.00.
It was trading with volumes of 23,340 shares, compared to its thirty day average of 13,812 shares, an increase of 68.98 percent.
In the previous trading session, the share closed up 0.12 percent or Rs 2.55 at Rs 2,138.20.
The share touched its 52-week high Rs 2,820.05 and 52-week low Rs 1,761.25 on 22 April, 2022 and 29 July, 2021, respectively.
Currently, it is trading 25.96 percent below its 52-week high and 18.55 percent above its 52-week low.Market capitalisation stands at Rs 31,227.39 crore.
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