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Hold Polycab India; target of Rs 2472: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Polycab India with a target price of Rs 2472 in its research report dated May 11, 2022.

May 12, 2022 / 01:20 PM IST
 
 
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Prabhudas Lilladher's research report on Polycab India


We have increased FY23-24 EPS estimates by 4% each to mainly reflect higher top-line growth assumption, as management expects ~20% growth in W&C segment. We believe margins will gradually recover and remain structurally positive for long term given 1) sustained increase in B2C mix with focus on premiumization 2) pick up in infrastructure/ renovation/ construction activities 3) implementation of Project Leap (targeting Rs200bn revenue along with margin improvement and GTM expansion by FY26) and 4) consumer shift gains from unorganized to organized sector.


Outlook


We estimate Sales/ PAT CAGR of 14%/ 29% over FY22-24E and value the stock on SOTP based target price of Rs2,472 (derived PE of 26.3x FY24 EPS; W&C/ FMEG valued at 25x/ 30x). Maintain Hold.


For all recommendations report, click here

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first published: May 12, 2022 12:57 pm
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