POLYCAB INDIA LTD
Polycab is India’s leading manufacturers of cables and wires and allied products such as uPVC conduits and lugs and glands. We have a range of cables and wires for practically every application. More recently Polycab has also launched a wide range of consumer electrical products like Fans, Switches, Switchgear, LED lights and Luminaries, Solar Inverters, and Pumps.
Revenue Breakup
Wires & Cables – 81%
FMEG – 8%
Others – 11%
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales | 12,204 | 14,108 | 18,039 |
| Sales Growth % | 38.80% | 15.60% | 27.87% |
| Expenses | 10,940 | 12,265 | 15,548 |
| Operating Profit | 1,264 | 1,843 | 2,492 |
| OPM % | 10% | 13% | 14% |
| Net Profit | 917 | 1,283 | 1,803 |
| EPS in Rs | 60.80 | 84.85 | 118.75 |
Synopsis of Financials
- Q2 FY ’25 consolidated revenue grew by 30% YoY, driven by strong performance across all business segments.
- EBITDA grew by 4% YoY, with EBITDA margin at 11.5%.
- Highest ever quarterly PAT of ₹4,452 million, with a PAT margin of 8.1%.
- Net cash position improved to ₹24.3 billion from ₹16.4 billion in Q1 FY25.
- Working capital cycle improved to 44 days, aided by clearance of finished goods inventory and improvement in payable days.
- Capex for Q2 FY25 stood at ₹2.9 billion, totaling ₹5.7 billion for H1 FY25, in line with guidance of ₹10 billion to ₹11 billion for the year.
Final Outlook
Stock Market Metrics
Current Market Price (CMP): ₹7,418.15
Market Capitalization: ₹1.12 trillion, reflecting strong market confidence and growth
P/E Ratio: 62.54, indicating a high valuation, typical of growth-oriented companies
Profitability Metrics
Quarterly Net Profit: ₹445.21 crore, showing a modest growth of 3.35% year-on-year
Revenue (TTM): ₹201.29 billion, demonstrating robust operational performance
Return on Capital Employed (ROCE): 31.33%, highlighting the company’s efficiency in generating returns from its investments
Polycab India demonstrates strong financial health and market confidence. The company’s robust revenue growth, high ROCE, and consistent profitability underline its operational efficiency and leadership in the electrical equipment sector. With a market cap of ₹1.12 trillion and a 1-year stock price growth of nearly 37%, Polycab has positioned itself as a reliable growth stock.
However, the high P/E ratio (62.54) indicates that the stock is trading at a premium, suggesting that investors are optimistic about its future growth. The modest dividend yield (0.40%) reflects the company’s reinvestment focus rather than immediate shareholder payouts. Polycab continues to outperform peers in key areas, making it a solid choice for long-term investors with a growth-oriented strategy.
I would give Buy recommendation for this stock
Polycab-India-Ltd
