Sharekhan has given Buy recommendation for Polycab India with a target price of Rs. 3000 in its research report issued on Mar 10, 2022

Sharekhan’s research report on Polycab India

Our interaction with Polycab India Limited’s (POLYCAB) management reaffirmed our positive stance on the company backed by its plans to strengthen market leadership and expand its product portfolio. The company eyes a broad-based recovery in demand for Wires & Cables (W&C) from key sectors like infrastructure and real estate. It has a formidable market share of ~22% in the organized W&C segment. Project Leap (a five -year roadmap) envisages Rs. 20,000 crore revenue by FY26 (CAGR of ~18% over FY21-26) with 1.5x industry growth. It aims to regain EBITDA margin of 11-13% in W&C and achieve ~12% EBITDA margin in Fast moving electrical goods (FMEG) by FY26.

Outlook

We retain a Buy rating on the stock with an unchanged PT of Rs 3,000 as the valuation (P/E of ~23x FY24E) seems compelling given its strong brand equity and expansion plans.

More Info

At 12:56 hrs Polycab India was quoting at Rs 2,333.45, up Rs 19.75, or 0.85 percent.

It has touched an intraday high of Rs 2,354.30 and an intraday low of Rs 2,301.95.

It was trading with volumes of 4,811 shares, compared to its thirty day average of 19,879 shares, a decrease of -75.80 percent.

In the previous trading session, the share closed up 2.99 percent or Rs 67.15 at Rs 2,313.70.

The share touched its 52-week high Rs 2,770.85 and 52-week low Rs 1,247.00 on 18 January, 2022 and 19 March, 2021, respectively.

Currently, it is trading 15.79 percent below its 52-week high and 87.13 percent above its 52-week low.

Market capitalisation stands at Rs 34,868.36 crore.

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