Polycab India Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 26421.62 Crore) operating in Consumer Durables sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3064.79 Crore, up 8.17 % from last quarter Total Income of Rs 2833.30 Crore and up 40.86 % from last year same quarter Total Income of Rs 2175.84 Crore. Company reported net profit after tax of Rs 282.48 Crore in latest quarter.
Investment Rationale
Polycab has maintained its leadership position in the organized C&W segment, while in the B2C categories faster growth was witnessed in the Housing Wires and FMEG segment led by a strong distributor network and brand presence. The company has launched ‘Project Leap’ and has set a target of over Rs 20,000 Cr revenues in the coming 5 years. This quantum leap will be led by faster and profitable growth in the B2B segments (FMEG and Retail Wires) and industry-leading growth in the B2C business. The brokerage believes the growth will be driven by demand recovery, new product launches, product premiumization, increasing contribution of exports, and online sales over the long run. It has increased FY22E/FY23E revenue estimates by 3.8%/7.8% respectively. It values Polycab at 25x FY23E EPS of Rs 76 to arrive at a target price of Rs 1900/share, implying an upside of 10% from CMP.
Promoter/FII Holdings
Promoters held 68.5 per cent stake in the company as of Sept 30, 2020, while FIIs held 6.1 per cent, DIIs 12.2 and public and others 13.1 per cent.
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