Sharekhan has given Buy recommendation for Polycab India with a target price of Rs. 2375 in its research report issued on Jul 06, 2021
Sharekhan’s research report on Polycab India
FY2021 fetched Polycab India twin benefits – improving businesses and a stronger balance sheet, though H1 was affected by COVID-19. Polycab’s market share in the C&W segment rose by over 200 bps to 20-22% in FY2021 while FMEG portfolio saw growth & market share gains across the board. Net cash surplus too rose significantly. Company’s strategy for both B2B and B2C segments eyes a revenue of Rs. 20,000 crore by FY2026 through cementing leadership in C&W segment and fast-growing consumer electrical business.
We retain a Buy on Polycab with a revised PT of Rs. 2,375, given a strong earnings growth trajectory over FY2021-FY2023.