Latest news with #Polycab
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First Post
3 days ago
- Business
- First Post
Building Safe, Smart, and Sustainable Spaces with P. Kruthivas
In this compelling vodcast of Infra Safety: Powering India's Electrical Future, presented by Polycab & CNBC-TV18, Jude Sannith, sits down with P. Kruthivas, Founder & Managing Director of Pushkar Properties. read more As India's cities scale vertically and smart homes become the norm, electrical safety must become a core part of infrastructure conversations, not an afterthought. In this compelling vodcast of Infra Safety: Powering India's Electrical Future, presented by Polycab & CNBC-TV18, Jude Sannith, sits down with P. Kruthivas, Founder & Managing Director of Pushkar Properties. A seasoned real estate developer known for his luxury residential projects in Chennai's Central Business District, Kruthivas shares invaluable perspectives on how safety, aesthetics, and technology can—and must—coexist in modern construction. STORY CONTINUES BELOW THIS AD From ensuring compliance with national electrical codes to adopting best practices in high-rise planning, the discussion dives deep into what it takes to create future-ready real estate. Kruthivas stresses the importance of early-stage MEP planning, standardised wiring practices, smart integration, and consistent quality checks across housing segments—whether it's luxury apartments or affordable housing. More from Business How Indian fintech startups are driving Malaysia's UPI-like digital payments revolution He also addresses the evolving landscape of Indian real estate: the growing energy demands from EVs and smart appliances, the rise of solar-powered buildings, and the increasing expectations of tech-savvy homebuyers. In each case, he outlines how real estate developers must align with trusted partners like Polycab to meet these demands without compromising on safety. Key Discussion Points: Electrical safety challenges in high-rises and luxury developments. Why proper planning, certified products, and a trained workforce matter The impact of smart homes and EV integration on infrastructure design The role of solar adoption and how it affects safety planning Why brands like Polycab are crucial in setting industry-wide benchmarks Whether you're a developer, policymaker, or homeowner, this vodcast offers expert insights to help you build—and live—more safely in today's connected world. Watch now and discover how safety-first thinking can shape the future of Indian real estate!
Mint
09-05-2025
- Business
- Mint
Pros and cons of investing in Polycab India
The stock of Polycab India has been a big wealth creator over the long term. Since the lows of the covid-19 outbreak-induced crash in March 2020, the stock has delivered a compound annual growth rate (CAGR) of about 40%. The share price went up more than 12 times before the recent correction over the last few months. Investors were extremely bullish on the stock all the way till the start of this year, when the market correction began to take its toll. The stock fell from an all-time high just above ₹7,600 in December 2024 to around ₹4,550 in late February 2025. This was a 40% correction in a little over two months. Also Read: Polycab shone in FY25, but will investors stay plugged in? While the stock has recovered to nearly ₹6,000, it's safe to say that sentiment has taken a hit. Polycab India share price—5 years But what is the outlook today? In this editorial, we will discuss the pros and cons of investing in the stock of Polycab India. Pros Well-established business Polycab India is one of India's leading manufacturers of cables and wires. The company has a wide portfolio of cables, wires, and allied products, such as uPVC conduits, lugs, and glands. It offers a varied range of wires and cables for retail and industrial use, catering to diverse industries. It is also one of the largest exporters of cables in India. Recently, it also entered into consumer electrical products like fans, switches, switchgear, LED lights, luminaries, solar inverters, and pumps. The company has a market share of 26-27% (FY25) in domestic organised wires and cables business and has presence in over 76 countries. It derives 89% of revenues from wires and cables segment, 9% from fast-moving electrical goods, and the balance 2% from other businesses. It has 25 manufacturing facilities and a network of over 4,300 distributors, around 200,000 retail outlets, 23 warehouses, four regional offices, nine local offices, and 17 experience centres in India. Polycab has also expanded its presence to 76+ countries. Out of the exports, 46% are to North America and 20% to Europe. The company derives about 10% of its revenues from exports. The financial performance of the company from 2020 to 2024 was good. Sales increased at a CAGR of 17.7%, and net profits increased at a CAGR of 29.2%. The RoE and RoCE have averaged at 16% and 25.5%, respectively. In FY25, Polycab India reported its highest-ever net profit of ₹2,050 crore, up 13% YoY. Full year revenues rose by 24% YoY to ₹22,000 crore. The management has declared that Polycab is now the largest Indian company in the electrical industry by revenue and the most profitable company in the electrical industry for the third consecutive year. The company also has an almost pristine balance sheet. The total debt is near zero compared to its cash equivalents of ₹2,460 crore at the end of FY25. Also Read: Top 5 fundamentally strong penny stocks to watch out for in 2025 It primarily relies on cash generated from operating activities to fulfil its working capital and capital expenditure requirements. Good long-term growth prospects The Indian cables and wires industry is set for a period of rapid expansion, fuelled by the rising demand for infrastructure, urbanization, and electrification. The sector, valued at approximately ₹1.8 trillion in FY23, is projected to grow at a CAGR of 12-14% between FY23 and FY27. The increasing adoption of modern electrical systems, smart grids, and renewable energy sources are drivers of demand for high-quality cables. Government initiatives such as production-linked incentives (PLI), Make in India, and domestic manufacturing incentives are accelerating this shift. Organised players, with better financial and operational capabilities, are benefiting from this transition, leading to a consolidation of market share among larger companies. Companies are also exploring new opportunities in high-voltage direct current (HVDC) and deep-sea cables, which are critical for efficient power transmission and offshore wind energy projects. Additionally, the rising adoption of electric vehicles (EVs) has created a new demand segment for specialised cables used in EV charging infrastructure. Global demand for high-quality, cost-competitive cables has allowed Indian manufacturers to expand their international footprint, too. To capitalise on all these opportunities across different sectors, Polycab India is transitioning to a vertical-focused structure. Going ahead, the company's management expects the demand momentum to remain strong in the wires and cables business. It has planned a capex of ₹700 crore each year for the next two years. Of this, three-fourths will be allocated towards the cables and wire business for setting up a high-voltage manufacturing plant. The rest of the capex will be for the consumer electricals business, maintenance, and debottlenecking. The management has planned to fund the entire capex through internal accruals as the company has adequate liquidity for the same. However, over the long term, over the next five years, the anticipated capex will be between ₹6,000 crore and 8,000 crore. Thus, the company might use some debt to fund it. The management anticipates the FMEG business will become profitable, which will add to the company's overall profitability. Cons UltraTech's entry UltraTech Cement, a dominant force in India's cement market, is making a bold move to expand its footprint in the construction value chain by entering the wires and cables sector. The company has committed an investment of ₹1,800 crore to establish its presence. The project is expected to be commissioned by December 2026, marking UltraTech's transition from a cement firm to a multi-segment construction solutions provider. UltraTech's entry introduces a powerful new competitor backed by significant financial resources and an extensive distribution network. It will disrupt the industry's competitive balance, as UltraTech leverages its scale, supply chain efficiency, and brand strength to gain a foothold in the market. As part of the Aditya Birla Group, the company can access key inputs like copper and aluminium from its sister company, Hindalco. This gives UltraTech a cost edge over existing players, who rely on external suppliers and are vulnerable to price fluctuations in global metal markets. Securing raw materials at lower costs could enable UltraTech to offer aggressive pricing, potentially putting pressure on the profit margins of incumbents. The company's vast dealer and distributor network, which has played a crucial role in its cement business, could also accelerate its market penetration in the wires and cables segment. Also Read: Dabur stock lacks triggers amid weak financial show With a strong presence across urban and rural India, it may be able to integrate its new offerings into existing sales channels, giving it an advantage in terms of reach and distribution efficiency. Tariff overhang US President Donald Trump has announced reciprocal tariffs on almost every country. India's tariff rate was 26%. Now the tariffs have been paused to allow for negotiations. But the announcement itself was enough to hurt investor sentiment. One of the largest impacts, sector-wise, if the potential tariffs will be felt by the electrical and electronics manufacturing companies. Polycab India is one of the prominent exporters of electrical equipment to the US. Even though the share of revenue from the US market is in the single digits, this is an overhang on the stock until clarity emerges on the tariff front. Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Time of India
09-05-2025
- Business
- Time of India
Hold Polycab India, target price Rs 6,150: ICICI Securities
Polycab India's key products/revenue segments include Cables & Wires, Fast-Moving Electrical Goods (FMEG), Income from Eng. Construction Contracts, Grants, Export Incentives for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 7033.87 crore, up 33.95 % from last quarter Total Income of Rs 5251.07 crore and up 24.59% from last year same quarter Total Income of Rs 5645.73 crore. The company has reported net profit after tax of Rs 734.36 crore in latest quarter. The company's top management includes T Jaisinghani, Sharma, Banerjee, Mr.T P Ostwal, Mr.R S Sharma, Tongia, Talati, R Jaisinghani, A Jaisinghani, Agarwal. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 15 crore shares outstanding. Live Events Investment Rationale Polycab reported strong numbers in Q4FY25. Highlights were: (1) FMEG portfolio reported profit at EBIT level, after posting losses for past 10 quarters. Reduction in ad-spend, as % of net sales, and operating leverage led to higher EBIT margins. (2) With increase in copper prices as well as normalisation of trade inventory in wires in Q4FY25 after reduction in trade inventory in Q3FY25 led to strong growth in cables and wires segment. However, deferment of orders led to 24% revenue decline in international business. (3) The company has also gained market share of ~100bps in domestic organised cables and wiresindustry. With competitive intensity likely to inch up in cables and wires with the entry of Ultratech and Adani in FY27-28, ICICI Securities models Polycab to focus on market share gains even if there is a margin impact in the near term (DCF accretive). They trimmed FY26E earnings by 3.2% and retain HOLD with a DCF-based revised target price of Rs 6,150 (implied target P/E of 32x FY27E EPS). Promoter/FII Holdings Promoters held 63.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 11.11 per cent, DIIs 10.79 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ICICI Securities has a Hold call on Polycab India with a target price of Rs 6150. The current market price of Polycab India is Rs 5905.05. Polycab India, incorporated in 1996, is a Mid Cap company with a market cap of Rs 88638.46 crore, operating in the Consumer Durables India's key products/revenue segments include Cables & Wires, Fast-Moving Electrical Goods (FMEG), Income from Eng. Construction Contracts, Grants, Export Incentives for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 7033.87 crore, up 33.95 % from last quarter Total Income of Rs 5251.07 crore and up 24.59% from last year same quarter Total Income of Rs 5645.73 crore. The company has reported net profit after tax of Rs 734.36 crore in latest company's top management includes T Jaisinghani, Sharma, Banerjee, Mr.T P Ostwal, Mr.R S Sharma, Tongia, Talati, R Jaisinghani, A Jaisinghani, Agarwal. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 15 crore shares reported strong numbers in Q4FY25. Highlights were: (1) FMEG portfolio reported profit at EBIT level, after posting losses for past 10 quarters. Reduction in ad-spend, as % of net sales, and operating leverage led to higher EBIT margins. (2) With increase in copper prices as well as normalisation of trade inventory in wires in Q4FY25 after reduction in trade inventory in Q3FY25 led to strong growth in cables and wires segment. However, deferment of orders led to 24% revenue decline in international business. (3) The company has also gained market share of ~100bps in domestic organised cables and wiresindustry. With competitive intensity likely to inch up in cables and wires with the entry of Ultratech and Adani in FY27-28, ICICI Securities models Polycab to focus on market share gains even if there is a margin impact in the near term (DCF accretive). They trimmed FY26E earnings by 3.2% and retain HOLD with a DCF-based revised target price of Rs 6,150 (implied target P/E of 32x FY27E EPS).Promoters held 63.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 11.11 per cent, DIIs 10.79 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
Mint
08-05-2025
- Business
- Mint
Polycab shone in FY25, but will investors stay plugged in?
Polycab India Ltd surpassed its ₹20,000-crore revenue goal under Project Leap a year ahead of schedule, with FY25 consolidated revenue at ₹22,410 crore. While investors were anticipating this after revenue for the nine months to December (9MFY25) came in at ₹15,420 crore, stellar March-quarter (Q4FY25) results helped. Q4 revenue increased 25% year-on-year to ₹6,986 crore aided by a solid showing from the chief wires & cables (W&C) business, which saw domestic value growth of 27%. The W&C segment contributed 84% of Polycab's FY25 gross revenues. The company's share of the domestic organised W&C market rose from 25-26% in FY24 to 26-27% in FY25 and domestic volume growth was in the mid-teens last year. Also read: Marico's margin pain will linger for some time Cables outpaced wires year-on-year in Q4, while wires – a relatively higher-margin category – did better quarter-on-quarter, supporting the sequential margin expansion. Overall Ebitda margin stood at 14.7% in Q4, up from 13.8% in Q3 and 13.6% in Q4FY24. Specifically, the W&C Ebitda margin for FY25 was 14-15%. Pass-through of changes in copper and aluminium prices happens monthly; Polycab took a mid-to-high single-digit price hike in Q4FY25. Wired for growth The good run may well continue. 'Polycab has consistently outperformed in the past, with better-than-guided Ebitda margins in the cables & wires segment, so that will continue," said Achal Lohade, analyst, Nuvama Research. He noted that Polycab's domestic market share was almost double that of its closest competitor, KEI Industries Ltd. Its size (wide product portfolio) brings in huge competitive advantages, so Polycab should continue to outpace industry growth, he added. In Q4FY25, Polycab's fast moving electrical goods business turned profitable for the first time in 10 quarters. After a strong end to FY25, management is upbeat. It said in the earnings call that domestic demand for wires and cables remained strong, led by the real estate and power sectors, and the government's capital expenditure (capex). Also read: Another solid year for Coforge given strong deal pipeline? Yes, but… Against this backdrop, Polycab is eyeing medium-term domestic W&C revenue growth of 1.5-2 times industry growth. Sustainable W&C Ebitda margin is projected to be at 11-13% over the next five years through its strategic project Spring. Capex guidance has been maintained at ₹6,000-8,000 crore for the next five years, mainly to boost the W&C business. Meanwhile, the high-margin international business saw some hiccups. Q4FY25 export revenue fell 24% year-on-year due to a large order rollover to the next quarter. Despite tariff-led uncertainty in global trade, Polycab is expanding to new geographies to boost revenue visibility and minimise revenue concentration risk. It added five new countries in FY25, taking its total count to 84. It expects exports' contribution to revenue to touch 30% by FY30, from 6% in FY25. Competition from giants On the flip side, the spectre of increased competitive intensity looms in the domestic W&C segment with the entrance of UltraTech Cement Ltd and Adani Group. For now, Polycab's management doesn't seem perturbed by this. It feels, given the significant unorganised presence in the sector and healthy industry growth, that the entry of new companies will drive market-share gains for the organised segment. 'While competitive intensity may rise, Polycab is well-positioned to navigate these challenges, owing to its strong brand equity, execution capabilities, and global presence. That said, margin protection beyond FY28 could emerge as a risk as the industry landscape evolves," said a Nirmal Bang Institutional Equities report dated 7 May. Also read: Can M&M keep its pace in FY26? The stage is set for Polycab to continue its momentum, at least for the next couple of years. The stock now trades at 38 times estimated FY26 earnings, as per Bloomberg data. Valuations are not exactly cheap, and investors will assess the delivery when deciding whether to stay plugged in.
Time of India
07-05-2025
- Business
- Time of India
Geopolitical tensions may fuel market volatility in short term: Amnish Aggarwal
So, despite therefore capex being high, the kind of necessity it has emerged over the past at least 10 years or so ever since the data usage has increased, this is a sector which is going to stay there. If you look few months ago what had happened was that the largecaps actually they saw a lot of FII selling and whenever we see FII selling, the selling usually is concentrated a bit in the top say 20, 25, or say 50 stocks. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "Now, it all depends upon to what extent this escalates. If Pakistan also retaliates and there is some escalation, then we could see markets turning much more volatile at least in the coming few days," says Amnish Aggarwal So, the initial reaction which you showed of the market 60 points down, this is not fully capturing that how the things are set up today. You see, it is not only the question of your operation Sindoor, but the news which I looked at that there is a heavy artillery firing which is going on across the border. Now, it all depends upon to what extent this escalates. If Pakistan also retaliates and there is some escalation, then we could see markets turning much more volatile at least in the coming few you look few months ago what had happened was that the largecaps actually they saw a lot of FII selling and whenever we see FII selling, the selling usually is concentrated a bit in the top say 20, 25, or say 50 subsequently due to the weight even the midcaps came down and what has happened in the last month-and-a-half in a very gist of it the Indian market was perhaps the most oversold or it was heavily sold by FIIs in the last six months and after the Trump tariff uncertainty around the world and then we saw the markets actually stabilising and largecaps in the current situation everyone knows that the interest rates are going to come down, the next year's profitability of banks is not going to be anything great, and there has been a rally of say 15% to 20% in many of these bank stocks, so it is a typical sectoral rotation and the breather which is coming in at this point of in the near term, there could be some space for defensives, now whether you call some of these pharma names, hospital names, defence stocks could be something to watch out for. So, defensives could gain some ground in this kind of an environment where there is uncertainty regarding war and all and banks, some of the other, so they can take little bit of breather or backseat as of and cable companies actually if you look at say Polycab although there export business it was under a bit of pressure because some contracts they got rolled over to next quarter, but overall the numbers have been pretty decent for all these companies and it has been both on the wire as well as on the cable if you look at say Polycab, maybe say three months back till the news of UltraTech entering the segment and even Adani Group entering the segment was there, the stock was trading at something like 40-45 times, 50 times, and post that the stock corrected significantly. The valuations today are much more is trading around 30 odd times on FY27, which today is much more affordable than it used to be. Now what competition will do, only time will tell. It might get reflected in a year or two years down the line, not on an immediate basis and that too it can first come in a wire segment because it is more like a case of cable you need certifications, you need approvals which takes a pretty-pretty long period of time. So, stocks going to earlier multiples of 45 times, 50 times that is not going to be the case because people have experienced particularly in the paint segment that when a large player tends to enter the segment, there could be those PE multiples might not come, but because the PE multiples have become more reasonable, there is a probability of making reasonable returns from the current levels and currently, we are preferring KEI over is you can say some sort of a likelihood which can be there that if there is no reaction at all or a reaction like say what happened in case of say Israel and Iran a few months back. If there is a muted reaction or no reaction, then definitely I would say things will settle and the market can actually look at some sort of an upward movement. But my own sense is that to expect that there will not be any reaction to happen, at this point of time I will not expect market or the people particularly who trade to build up any position expecting that there would not be any reaction. But if there is no reaction or the things settle in the next couple of days, two-three days, then that would be a big positive for the markets.I have been saying this one line that telecom is the best consumer stock. Today telecom is centre of everything whether it is a common man, whether it is financial, defence, everywhere, you cannot work without telecom and this is going to be the telecom companies you can play only through either it is Bharti or through Reliance and these stocks particularly on the telecom side will continue to do well. We will continue to see them giving good double digit growth rates even for the next two-three years at is a capital-intensive industry because the technological upgradation continues to happen over there. There is absolutely no doubt about it. But having said that the kind of times we are today living in, the need or the necessity of connectivity, the way it has changed the lives of a common man, the way it has got penetrated and the impact it can have on the overall spectrum that is far-far you cannot match a cash flow of say Hindustan Unilever or any other FMCG stock with these telecom companies. But if you look at the longevity of where it goes from here, today the entry barriers they are extremely high. So, for example, in FMCG today you are looking at B2C companies. Every company coming, going on an Amazon or a Flipkart or anywhere trying to sell their product. Can you get any more telecom companies easily into the system and they can disrupt the business so easily, I think that is not despite therefore capex being high, the kind of necessity it has emerged over the past at least 10 years or so ever since the data usage has increased, this is a sector which is going to stay there.
