Sharekhan has given Buy recommendation for Polycab India with a target price of Rs. 2850 in its research report issued on Sep 13, 2021

Sharekhan’s research report on Polycab India

Our interaction with management indicates traction in B2B, institutional and B2C sales, barring fans, post Q1FY2022. Consolidation of copper prices leads to improving dealer stocking, pick up in primary sales, and lower inventory. We expect H2FY2022 to be better than H1. Project leap target of Rs. 20,000 crore revenue by FY2026 remains intact to be supported by several organization wide initiatives including aggressive distribution reach. The company is one of the quasi plays on both infrastructure and consumption growth story of India.

Outlook

We retain Buy on Polycab India Limited (Polycab) with a revised PT of Rs. 2,850, led by upwardly revised estimates and strong earnings growth outlook.

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