Polycab India shares have given multibagger returns so far this year (Y-to-date), as the stock is up over 120% in 2021, while it has gained 141% in the same period of the year. From ₹945 per share level in October last year, the multibagger stock currently does business ₹2,290 per share.
Brokerage firm Centrum is seeing further upside in the stock amid strong revenue growth as it . Have a purchase recommendation with a target price of ₹3,110 per share (potential increase of over 35% from current levels).
“Sales of Wires & Cables grew 44% year-on-year to Rs 26.3 billion, largely value-based. Growth was broadly uniform in both the cable and wire categories; However, the cables faced intense competition due to sub-optimal demand environment,” the note said.
Margins were under pressure due to delay in price hike in B2B orders. EBIT margin in H2FY22 is likely to be at the low end of the 11%-13% guided range, but is expected to bounce back in FY23E, Centrum further said.
“Polycab will prioritize gaining market share along with margin expansion in FY12. We have made minor revisions to our earnings estimates.”
Polycab is a leader in wire and cable and its products include fans, LED lighting, luminaries, switches, solar products and accessories. The company’s consolidated net profit for Q2 declined 9.4% to . Done ₹200.52 crore for the September 2021 quarter. net profit of the company ₹221.55 crore during the same period of 2020-21.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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