Latest news with #PolycabIndia
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.
Business Standard
06-05-2025
- Business
- Business Standard
Polycab India consolidated net profit rises 33.09% in the March 2025 quarter
Sales rise 24.93% to Rs 6985.80 crore Net profit of Polycab India rose 33.09% to Rs 726.67 crore in the quarter ended March 2025 as against Rs 546.00 crore during the previous quarter ended March 2024. Sales rose 24.93% to Rs 6985.80 crore in the quarter ended March 2025 as against Rs 5591.90 crore during the previous quarter ended March 2024. For the full year,net profit rose 13.22% to Rs 2019.99 crore in the year ended March 2025 as against Rs 1784.05 crore during the previous year ended March 2024. Sales rose 24.22% to Rs 22408.31 crore in the year ended March 2025 as against Rs 18039.44 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 6985.805591.90 25 22408.3118039.44 24 OPM % 14.6813.62 - 13.2113.81 - PBDT 1040.92790.98 32 2998.952604.34 15 PBT 960.56725.26 32 2700.852359.30 14 NP 726.67546.00 33 2019.991784.05 13
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Business Standard
06-05-2025
- Business
- Business Standard
Polycab India shares rise 6% from day's low on Q4 results; check highlights
Polycab share price today Polycab share price gained 4.8 per cent on the BSE on Tuesday, May 6, 2025, after the electrical equipment maker reported solid results for the March 2025 quarter (Q4FY25). On the stock exchange, Polycab shares hit a high of ₹6,078 per share, rising 6.1 per cent from the day's low of ₹5,727.45. The rise in Polycab shares today was led by healthy volumes with 0.12 million shares having changed hands, so far, on the BSE as against a two-week average of 0.019 million shares. Polycab Q4 results 2025 For the March quarter of the previous financial year, Polycab India reported a net profit of ₹734.4 crore, up 33 per cent year-on-year (Y-o-Y) and 58 per cent quarter-on-quarter (Q-o-Q). Its net profit margin expanded 60 basis points Y-o-Y and ~160 bps Q-o-Q to 10.5 per cent. Operationally, the company's revenue rose 25 per cent Y-o-Y and 34 per cent Q-o-Q to ₹6,985.8 crore, while Ebitda (earnings before interest, tax, depreciation, and amortization) surged 35 per cent Y-o-Y and 42 per cent Q-o-Q to ₹1,025.4 crore. The company attributed the healthy revenue growth to robust performance across business segments. That apart, Polycab's Ebitda margin improved by ~110 bps to 14.7 per cent in Q4FY25, driven by a profitable turnaround in the FMEG (fast moving electrical goods) business and stronger margins in the EPC business off a lower base. For the entire financial year, Polycab India reported its highest-ever net profit of ₹2,045.5 crore, up 13 per cent Y-o-Y. "Full year revenues rose by 24 per cent Y-o-Y to over ₹22,000 crore, exceeding the Project Leap FY26 revenue goal of ₹20,000 crore a year ahead of schedule. Polycab is now the largest company in the electrical industry by revenues," the management said in its statement. It added: Quarterly net profit of Polycab India crossed ₹700-crore mark for the first time, contributing to a record annual PAT exceeding ₹2,000 crore. With this performance, Polycab continues to be the most profitable company in the electrical industry for the third consecutive year. Polycab India FY25 results highlights Apart from record net profit for the financial year, Polycab India saw market share gains in the domestic organised wire and cable (W&C) industry, from 25-25 per cent in FY24 to 26-27 per cent in FY25. This, Polycab said, was achieved via strategic internal initiatives. The company also saw improvement in net cash balance via optimising cash flow. Net cash balance at the end of FY25 stood at ₹2,460 crore vs ₹2,140 crore Y-o-Y. The company's dividend payout ratio increased to 26.3 per cent in FY25. Polycab India declared a dividend of ₹35 per share for FY25, up from ₹30 per share in FY24. Polycab India share price history So far in calendar year 2025, Polycab India shares have declined 20.2 per cent on the BSE as against an over 2 per cent rise in the BSE Sensex index. The stock hit a record high of ₹7,607.15 per share on October 15, 2024. Its all-time low stands at ₹525, which it touched on August 22, 2019, while its 52-week low stands at ₹4,557.45 per share, hit on February 28, 2025. Polycab India: Brokerage View, Stock Outlook Polycab plans to invest ₹6,000-8,000 crore in the coming five years with major allocation towards C&W capacity expansion. The company plans to have its EHV cable production facility in Halol up and running by FY2026-end. Once operational, the company expects to achieve an asset turnover ratio of 4-5x and anticipates operating margin in the mid-teens range for the EHV cable segment. "Polycab has successfully consolidated its leading position in the C&W industry by performing consistently. However, with entry of deep pocketed player valuations is likely to be set lower with expectations of rising competition. We envisage a 20 per cent/~21 per cent revenue/PAT CAGR over FY2024-FY2027, with a good RoCE of 32 per cent," analysts at Mirae Asset Sharekhan had said after the company's Q3FY25 results. The brokerage had assigned a 'Buy' rating then with a share price target of ₹7,300.
Business Standard
06-05-2025
- Business
- Business Standard
Polycab India spurts as Q4 PAT jumps 33% YoY to Rs 734 cr; declares dividend of Rs 35/sh
Polycab India jumped 4.21% to Rs 6,042.95 after the company's consolidated net profit spiked 32.68% to Rs 734.40 crore on a 24.92% rise in revenue from operations to Rs 6,985.8 crore in Q4 FY25 over Q4 FY24. The growth in revenue was driven by robust growth across business segments. Profit before tax was at Rs 960.60 crore in Q4 FY25, reflecting a growth of 32.44% from Rs 725.30 crore reported in Q4 FY24. EBITDA jumped 34.65% YoY to Rs 1,025.4 crore in the quarter ended 31 March 2025. EBITDA margin improved to 14.7% in Q4 FY25 as against 13.6% in Q4 FY24, driven by a profitable turnaround in the FMEG business and stronger margins in the EPC segment off a lower base. On the segmental front, wires & cables business revenue grew by 22.34% YoY to Rs 6,019.1 crore in Q4 FY25, driven by sustained momentum across key sectors. Key contributors included increased government spending, improved project execution, continued strength in real estate, and an inflationary trend in commodity prices. The domestic business grew by 27% YoY, with cables growth once again outpacing wires. Both channel and institutional business showed healthy traction. The international business however experienced a temporary decline due to the rollover of a large order into the next quarter. EBIT margins for the quarter expanded by ~140 bps QoQ to 15.1%, driven by operating leverage and a favourable product mix, although partially offset by the lower contribution from the international business. The Fast-Moving Electrical Goods (FMEG) business registered a strong 33% YoY growth, with all product categories maintaining a robust growth trajectory. The fans segment delivered impressive growth despite a delayed summer, reflecting the effectiveness of our strategic initiatives and continued focus on premiumization. The lights and luminaires business sustained its momentum from the previous quarter, achieving strong volume and value growth, even amidst ongoing pricing deflation. Switchgears, conduit pipes & fittings, and switches also posted healthy growth, supported by steady demand from the real estate sector. Significantly, the business achieved break-even in Q4FY25 its first profitable quarter after ten successive quarters of strategic investments in talent, product innovation, and brand building. This milestone is a testament to our long-term vision and the effectiveness of its business strategy. The EPC business registered a strong growth of 47% YoY during the quarter to Rs 602.80 crore, on the back of robust execution of the RDSS order book. As of 31 March 2025, Polycab India's net cash position stood at Rs 2457.2 crore, up 14.77% from Rs 2,140.8 crore in the previous quarter. Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Limited, said: We have concluded FY25 on a historic high, delivering record revenues for both the fourth quarter and the full year, driven by strong, broad-based growth across business segments. Exceeding our Project Leap FY26 revenue goal a year ahead of committed schedule is a testament to our focused execution, market leadership, and strategic resilience. Our core Wires and Cables business maintained its strong momentum, the FMEG business grew ahead of industry as well as achieved quarterly profitability, and the EPC business scaled new heights, all contributing to making Polycab the largest Company by revenue in the Indian electrical industry, as well as reaffirming our position as the most profitable Company for the third consecutive year. With a sharpened strategic focus, robust fundamentals, and a culture of innovation and excellence, we are poised to build on this momentum and shape the next phase of Polycabs growth journey, under Project Spring, with confidence and purpose. Meanwhile, the company recommended dividend of Rs 35/- per equity share for the financial year 2024-25 subject to approval of members at the ensuing annual general meeting. Polycab India is the largest manufacturer of wires and cables in India and a fast-growing player in the Fast Moving Electrical Goods (FMEG) space. The Group is also in the business of engineering, procurement, and construction (EPC) projects.
