Polycab

Weak margin trajectory of the FMEG segment and valuations could limit upside

Wires and cables manufacturer Polycab India on Tuesday reported a 20 per cent year-on-year rise in net profit to Rs 325.33 crore for the fourth quarter ending March 31. The company's net profit was Rs 271.06 crore in the year-ago quarter, Polycab India said in a BSE filing. Revenue from operations during the quarter under review increased 34.90 per cent to Rs 3,969.98 crore compared to Rs 2,942.74 crore a year ago. For FY22, the company's net profit rose marginally by 3.53 per cent to Rs 917.28 crore compared to Rs 885.93 crore in FY21. In 2020-21, revenue from operations surged 38.80 per cent to Rs 12,203.76 crore from Rs 8,792.23 crore in FY21. "Our strong performance in fiscal year 2022 was underpinned by the extraordinary efforts of our team to achieve new milestones even in one of the most uncertain environments. We delivered accelerated business growth, record free cash flow, healthy returns on capital and market-leading shareholder returns. "We will champion our renewed pu

The technical analyst from HDFC Securities expects CDSL and Polycab to perform well

Demand recovery may help both companies post improved show in the coming quarters

Despite the correction on Monday, analysts are positive on the stock given multiple triggers

Havells India reported healthy Q3 performance on the back of strong festive demand, market share gains and increased penetration in smaller towns

Valuation discount to peers and recovery in certain pockets bode well

The latest members of the BS1000 club have bet on capital expenditure, acquisitions and partnerships for growth

Polycab India jumped 6 per cent to hit a new high of Rs 1,109 since its listing on April 16, 2019

Technical Calls by Gaurav Garg, Head of Research at CapitalVia Global Research Limited- Investment Advisor

In Q2FY20, Polycab's net profit more-than-doubled to Rs 194 crore, on the back of strong revenue growth

Polycab India is scheduled to announce July-September quarter (Q2FY20) results on October 23, 2019.

Product portfolio, brand strength and financials are the other positives

Proceeds of the issue will be used for scheduled repayment of certain borrowings