The world of cables and wires might not sound thrilling, but within it lies the backbone of countless industries. Polycab India Ltd has been wielding its influence in this realm, not just with sturdy sales growth but also through some strategic advertising moves. Over the last five years, they’ve been riding a wave of consistent sales, showing that they’re not just a flash in the pan but a steady force in a market that’s always in demand.
What makes this journey intriguing isn’t just the numbers; it’s the artful dance of their operational efficiency, seen in those fluctuating yet controlled Operating Profit Margin percentages. But hey, that’s not all! Their rising profits and generous dividends paint a picture of a company not just doing well, but perhaps paving a path for something bigger in the future.
In this piece, we’re diving deeper. Beyond numbers, we’re uncovering the intricate tale of Polycab’s performance, the industry dynamics, and how these threads might weave the fabric of their future. Stick around as we decode this narrative steering towards a milestone yet to unfold.
About Polycab India
Polycab Group, a trailblazer in India’s cable and wire manufacturing domain, is renowned for its top-notch production of cables, wires, uPVC conduits, and an array of electrical goods. Beyond conventional offerings, their diverse product range extends to consumer electricals such as Fans, Switches, LED lights, and Solar Inverters.
This conglomerate operates across three key segments. The Wires and Cables division, a leader in retail and industrial wire manufacturing, holds a significant market presence. The Fast-Moving Electrical Goods segment, launched in FY14, thrives with a product mix catering to a wide customer base. Additionally, their engagement in the Engineering, Procurement, and Construction sector signifies a commitment to holistic solutions.
Driven by foresight, Polycab strategically aims to reach a revenue milestone of Rs. 20,000 crores by FY26 through Project Leap. With 25 facilities spread across key locations like Halol, Daman, and Nashik, Polycab ensures a robust operational network. Their extensive outreach includes 4300+ distributors, 205,000+ retail outlets, and a network of warehouses and offices, underscoring a strong focus on accessibility and customer-centricity.
Polycab India Q3 Fy2024 Key Points and Summary:
- Polycab India’s Q3 FY24 results revealed a robust performance with a 15.4% year-on-year increase in consolidated net profit to Rs 413 crore.
- Consolidated revenue from operations surged by nearly 17% year-on-year to Rs 4,340 crore, indicating strong growth momentum.
- Despite a 3% sequential decline in the bottom line, the top line saw a moderate 3% increase, showcasing resilience amidst market dynamics.
- Consolidated EBITDA witnessed a commendable 13% growth to Rs 569.20 crore compared to the previous year.
- However, the operating margin contracted slightly by 44 basis points to 13.12%, reflecting some margin pressure.
- Total expenses, including finance costs, rose significantly, driven primarily by a notable increase in raw material costs, which constituted about 79% of the total expenses for the quarter.
- Despite these challenges, Polycab India’s mainstay wires and cables business reported a robust performance during the period, contributing to the company’s overall strength.
| Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | |
| Promoters + | 66.61% | 66.21% | 65.99% | 65.91% | 65.78% |
| FIIs + | 8.12% | 9.78% | 9.66% | 12.41% | 13.41% |
| DIIs + | 10.10% | 9.34% | 9.75% | 8.08% | 7.61% |
| Public + | 15.16% | 14.67% | 14.61% | 13.58% | 13.18% |
| No. of Shareholders | 3,24,531 | 3,14,107 | 3,09,229 | 3,17,468 | 3,37,380 |
The shareholder pattern of the company shows a consistent presence of promoters holding the majority stake throughout the observed period, ranging from 65.78% to 66.61%. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) also maintain notable but relatively smaller positions, with FIIs ranging from 8.12% to 13.41%, and DIIs ranging from 7.61% to 10.10%. The public holds a comparatively smaller share, ranging from 13.18% to 15.16%. Additionally, the number of shareholders remained relatively stable over the period, with slight fluctuations but maintaining a substantial base of investors, ranging from 3,09,229 to 3,37,380 shareholders.
Polycab India Share Price Target 2024 To 2030
Polycab India Share Price Target 2024
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| April 2024 | ₹5,190.90 | ₹4,513.83 |
| May 2024 | ₹5,114.19 | ₹4,447.12 |
| June 2024 | ₹5,298.30 | ₹4,607.22 |
| July 2024 | ₹5,245.31 | ₹4,561.14 |
| August 2024 | ₹5,455.13 | ₹4,743.59 |
| September 2024 | ₹5,673.33 | ₹4,933.33 |
| October 2024 | ₹5,562.09 | ₹4,836.60 |
| November 2024 | ₹5,784.57 | ₹5,030.06 |
| December 2024 | ₹5,842.42 | ₹5,080.37 |
In April 2024, Polycab India’s maximum price is anticipated to reach ₹5,190.90, while the minimum price is expected to be around ₹4,513.83. As the year progresses, both the maximum and minimum prices are projected to exhibit fluctuations, with December 2024 anticipated to witness the highest maximum price of ₹5,842.42 and a minimum price of ₹5,080.37.
Polycab India Share Price Target 2025
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2025 | ₹5,848.26 | ₹4,498.66 |
| February 2025 | ₹5,859.98 | ₹4,507.68 |
| March 2025 | ₹5,983.04 | ₹4,602.34 |
| April 2025 | ₹5,865.73 | ₹4,512.10 |
| May 2025 | ₹5,694.88 | ₹4,380.68 |
| June 2025 | ₹5,951.15 | ₹4,577.81 |
| July 2025 | ₹5,834.46 | ₹4,488.05 |
| August 2025 | ₹6,014.91 | ₹4,626.85 |
| September 2025 | ₹6,087.09 | ₹4,682.38 |
| October 2025 | ₹6,245.35 | ₹4,804.12 |
| November 2025 | ₹6,401.49 | ₹4,924.22 |
| December 2025 | ₹6,689.55 | ₹5,145.81 |
As we progress through 2025, Polycab India is anticipated to experience fluctuations in its maximum and minimum prices. In January, the maximum price is projected to reach ₹5,848.26, while the minimum price is expected to be around ₹4,498.66. Continuing through the year, each month presents its own market dynamics, with December 2025 likely to see Polycab India’s maximum price peaking at ₹6,689.55 and the minimum hovering around ₹5,145.81.
Polycab India Share Price Target 2026 To 2030
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | ₹8,235.46 | ₹5,300.18 |
| 2027 | ₹10,040.17 | ₹6,461.67 |
| 2028 | ₹12,240.38 | ₹7,877.67 |
| 2029 | ₹14,922.73 | ₹9,603.99 |
| 2030 | ₹18,192.89 | ₹11,708.60 |
In 2026, Polycab India is expected to witness a surge in both maximum and minimum prices, with projections indicating a peak of ₹8,235.46 and a minimum of ₹5,300.18. As we move into 2027, the company’s pricing dynamics are anticipated to further escalate, reaching a maximum of ₹10,040.17 and a minimum of ₹6,461.67. Continuing the trend, 2028 is poised to see Polycab India’s prices climb even higher, with projections indicating a maximum of ₹12,240.38 and a minimum of ₹7,877.67. The upward trajectory persists into 2029 and 2030, with maximum prices expected to reach ₹14,922.73 and ₹18,192.89, and minimum prices projected at ₹9,603.99 and ₹11,708.60, respectively. Throughout this period, Polycab India is forecasted to navigate market fluctuations while striving for sustained growth and profitability.
Polycab India Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (Crore Rs) |
7,986 | 8,830 | 8,792 | 12,204 | 14,108 |
| Expenses + (Crore Rs) |
7,035 | 7,701 | 7,681 | 10,940 | 12,265 |
| Operating Profit (Crore Rs) |
950 | 1,129 | 1,111 | 1,264 | 1,843 |
| OPM % | 12% | 13% | 13% | 10% | 13% |
| Other Income + (Crore Rs) |
64 | 91 | 164 | 161 | 133 |
| Interest (Crore Rs) |
117 | 50 | 43 | 35 | 60 |
| Depreciation (Crore Rs) |
141 | 161 | 176 | 202 | 209 |
| Profit before tax (Crore Rs) |
756 | 1,010 | 1,056 | 1,188 | 1,707 |
| Tax % | 34% | 24% | 16% | 23% | 25% |
| Net Profit + (Crore Rs) |
500 | 766 | 886 | 917 | 1,282 |
| EPS in Rs
|
35.39 | 50.97 | 59.15 | 60.8 | 84.8 |
| Dividend Payout % | 8% | 14% | 17% | 23% | 24% |
Polycab India’s financial performance over the last five years unveils a narrative of consistent growth coupled with occasional fluctuations.
The company has demonstrated a remarkable upward trajectory in sales, escalating from ₹7,986 crore in March 2019 to ₹14,108 crore in March 2023. This steady growth underscores the robust demand for Polycab’s products, reflecting positively on its market standing.
Despite some fluctuations, the OPM has generally been well-managed, peaking at 13% in March 2020 and 2023. The occasional dip to 10% in March 2022 indicates the challenges in controlling operating costs, but the overall trend signifies efficient operational management.
Other income has shown a fluctuating pattern, reaching its pinnacle at ₹164 crore in March 2021 and subsequently declining to ₹133 crore in March 2023. Simultaneously, total expenses have consistently risen from ₹7,035 crore in March 2019 to ₹12,265 crore in March 2023, signifying an increase in operational costs over the years.
The PBT has exhibited a consistent growth trend, escalating from ₹756 crore in March 2019 to ₹1,707 crore in March 2023. Concurrently, the Net Profit soared consistently, reaching ₹1,282 crore in March 2023, depicting the company’s ability to generate substantial profits.
The EPS trend showcases enhanced profitability on a per-share basis, surging from ₹35.39 in March 2019 to ₹84.8 in March 2023. Moreover, the gradual rise in the Dividend Payout percentage, increasing from 8% in March 2019 to 24% in March 2023, signifies the company’s commitment to rewarding shareholders.
These metrics underscore Polycab India’s resilience and growth potential, reflecting effective management strategies amid evolving market dynamics.
FAQS
- What does Polycab India specialize in? Polycab is a leading manufacturer in cables, wires, uPVC conduits, and related products. They’ve recently expanded into consumer electrical goods like Fans, Switches, LED lights, and more.
- What are the main business segments of Polycab India? The primary segments include Wires and Cables (W&C), catering to various industries; the FMEG segment, initiated in FY14, focusing on a diverse product range across different price ranges; and Other segments, mainly EPC business.
- What is Polycab India’s market capitalization? The current market capitalization of Polycab India is ₹77,888 Crores.
- What is the current stock price of Polycab India? The current stock price is ₹5,184, with a high/low of ₹5,733/₹2,890 in recent times.
- What is the Price/Earnings (P/E) ratio of Polycab India? The stock’s P/E ratio stands at 46.9, indicating the price paid for each unit of earnings.
- What is the Dividend Yield offered by Polycab India? The Dividend Yield stands at 0.39%, reflecting the dividend payout concerning the stock price.
- What is the Return on Capital Employed (ROCE) and Return on Equity (ROE) of Polycab India? The ROCE stands at 27.0%, indicating the efficiency in capital utilization, while the ROE is at 20.0%, depicting returns for shareholders.
- What is the Face Value of Polycab India’s stock? The Face Value of Polycab India’s stock is ₹10.0.
Should One Invest in Polycab India?
Polycab India Ltd. presents a mixed bag in terms of investment allure. The company’s commendable financial stability, highlighted by its minimal debt burden, significantly reduces potential financial risks. Moreover, its consistent dividend payout of 21.2% makes it an appealing choice for investors seeking reliable income streams.
However, the stock’s current valuation at 11.3 times its book value might give pause to value-oriented investors. The premium at which it trades warrants scrutiny to ascertain whether the anticipated capital growth justifies this higher valuation.
Despite the steep valuation, Polycab India has showcased an impressive growth trajectory. With a Compound Annual Growth Rate (CAGR) of 72% over three years and a staggering 107% in the past year, the market exhibits strong confidence and momentum in the company’s future potential.
Analyzing key financial metrics further emphasizes this positive narrative. The Return on Capital Employed (ROCE) at 27.0% and Return on Equity (ROE) at 20.0% signify efficient capital utilization and favorable returns for shareholders. However, the elevated Price/Earnings (P/E) ratio of 50.8 indicates that investors are paying a premium for each unit of earnings.
In conclusion, while Polycab India displays commendable financial strength and positive market sentiment, the high valuation demands careful consideration. Prospective investors must assess their risk tolerance and investment objectives prudently. Staying abreast of industry trends and seeking professional advice are crucial for making informed investment decisions aligned with one’s financial goals.
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