Time period given by analyst is one year when Polycab India Ltd. price can reach defined target.
Polycab India Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 34151.31 Crore) operating in Consumer Durables sector.
Polycab India Ltd. key Products/Revenue Segments include Cables & Wires, Income from Eng.Construction Contracts, Scrap, Grants, Export Incentives and Job Work for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 3155.23 Crore, up 65.56 % from last quarter Total Income of Rs 1905.81 Crore and up 47.00 % from last year same quarter Total Income of Rs 2146.42 Crore. Company reported net profit after tax of Rs 200.84 Crore in latest quarter.
Investment Rationale
The brokerage expects POLYCAB to register 20%/19% revenue/PBT CAGR over FY21-24E. Earnings CAGR will be lower at 15% due to lower tax rate of 16.8% in the base year of FY21 (owing to Rs1bn tax write-back). The brokerage assigns a P/E of 38x H1FY24 earnings (30% discount to sector leader, Havells) and arrive at a TP of 3,110 (Rs3,065 earlier).
Promoter/FII Holdings
Promoters held 68.36 per cent stake in the company as of 30-Sep-2021, while FIIs owned 6.89 per cent, DIIs 8.78 per cent.
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