ICICI Securities research report on Polycab India
Polycab reported strong Q1FY24 with revenue and PAT growth of 42.1% and 80%, respectively YoY. Key drivers were (1) strong institutional demand due to revival in infrastructure, real estate and capex cycle, (2) 88% growth in exports and (3) distribution rejig. We model Polycab to maintain strong earnings CAGR of 24.3% over FY23-25E led by healthy demand from B2B sectors and correction in commodity prices. We also model FMEG segment to revive in H2FY24. Improving maturity of value-for-money brand ‘Etira’ and premium brand ‘Hohm’ are likely to be DCF accretive events.
Outlook
We raise FY24-FY25 earnings estimates by ~9% to factor in strong Q1FY24 and commodity price correction. We maintain HOLD with DCF-based revised TP of INR4,100 (implied P/E: 31.4x FY25E; Earlier TP: INR3,400).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
