Sharekhan’s analysis report on Polycab India
Q3 PAT grew at a wholesome price of 15% y-o-y of Rs413 crore (in-line with road estimates) led by a sustained 20%+ development quantity from the cables & wires (C&W) section, which was partially offset by a 44 bps fall in margins y-o-y to 13.1%. Margins shrunk on greater A&P expense for ODI CWC 2023 and decrease income share of worldwide enterprise. Sturdy C&W quantity development is anticipated to proceed, given robust authorities and personal capex. The FMEG enterprise efficiency was average amid weak client demand which is anticipated to stabilize over subsequent 4 quarters.
Outlook
Current search of firm’s places of work by the Revenue Tax authority has created an overhang on the inventory; thus, we’re decreasing our goal a number of to 34x and lowered our TP to Rs. 5,510, whereas sustaining a purchase score on the inventory.
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Polycab India – 20012024 – khan
