Polycab India

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

Wires and cables manufacturer Polycab India (PIL) on Tuesday reported a 36.72 per cent growth in consolidated profit during the September quarter at Rs 270.45 crore. The company's profit stood at Rs 197.80 during the corresponding quarter of 2021-22, it said in a regulatory filing. Revenue from operations of the company during the quarter under review grew by 10.83 per cent to Rs 3,332.35 crore as against Rs 3,006.55 crore in the year-ago period. "We continued with our strong business performance in the second quarter, posting the highest ever second quarter revenue in the history of the company. Combined with the stand-out performance of the first quarter, our top-line for the first half of the year grew by 25 per cent year-on-year. Margin expansion was supported by strong growth in exports and judicious price revisions," PIL Chairman and Managing Director Inder T Jaisinghani said. Strong domestic economy with structural reforms focused on infrastructure development augurs well fo

Profitability was supported by better operating leverage and various strategic initiatives implemented over past few quarters, Polycab India chairman and managing director Inder T Jaisinghani noted.

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PBT up 16%

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

Brokerage firm Centrum Broking has given a 'buy' call to potential investors for shares such as Container Corporation of India, Polycab India, and Axis Bank

Can Fin Homes, Polycab India, IndiaMART InterMESH, Oracle Financial Services, Syngene International, Dixon Technologies, MCX and Ipca Labs were up between 2 per cent and 3 per cent in intra-day trade.

The company seeks to double revenues by FY26

Q3 results point to the trend; consolidation will continue, say analysts

Healthy demand uptick and pricing power also improve growth prospects, say analysts

In Q2FY21, the company's Ebitda grew 16 per cent year on year at Rs 312 crore, and margin improved 272 basis points to 14.76 per cent over the previous year quarter

As per weekly option data, handful of put writing on lower strikes ranging from 11,600 to 11,800 is witnessed which shows Nifty would face firm support in the sub11,800 zone

A short-covering move, along with addition of fresh position, is seen only if somehow Nifty sustains level of 11,200

The stock of Wipro has provided breakout from a flag and poll pattern on the daily chart which is considered as a bullish continuation pattern

It has already established subsidiaries in the US and Australia for trading wires and cables

Valuation discount to peers and recovery in certain pockets bode well

While near-term prospects hinge on unlocking of economy, the stock remains a good valuation play, say analysts

In the past seven trading days, the stock has fallen 9 per cent, thus underperforming the S&P BSE Sensex which rose 3.3 per cent

Firm trading at 19x its FY21 earnings, with peers trading at 35-45x