Anand Rathi is bullish on Polycab, India has recommended buy rating on the stock with a target price of Rs 945 in its research report dated July 22, 2020.
Anand Rathi 's research report on Polycab, India
Polycab’s weak Q1 was operationally in line with our estimates. B2C/tier 1-2 markets did better than B2B/metros. While FY21 will be tough, strategic steps to improve working capital and cost optimisation will offer long-run benefits. We remain positive on Polycab, given its leadership in the fast-growing C&W (incl. exports), wide distribution network, strong management and healthy balance sheet.
Thus, we maintain a Buy with a target of `945 (17x/20x FY22e P/Es for C&W/FMEG), earlier `884. Profitable growth in FMEG will support a re-rating.
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