Buy Polycab India target of Rs 3320: Sharekhan

Sharekhan's research report on Polycab India

Q3FY2023 performance was marked by strong volume growth of 18-20% in the Wires & Cables (W&C) business and significant improvement in profitability despite higher A&P spends. Increasing traction in exports, improvement in the FMEG segment, and sustained demand momentum in B2B/ B2C segments in W&C are key growth catalysts. The company has forayed into the EHV cables through a technological tie-up with Brugg Cables. It is setting up a manufacturing facility in Halol, Gujarat which would help cater to Rs. 4,000-5,000 crore EHV market by 2025.

Outlook

We retain a Buy on Polycab India Limited (Polycab) with a revised PT of Rs. 3,320 (based on FY25E EPS) given consistent outperformance versus peers, product portfolio expansion, market share gains and a healthy balance sheet.

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Polycab India - 21 -01-2023 - khan