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.
Outlook
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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