Mutibagger stock Polycab India Ltd Stock Review

 

Polycab India Ltd

ABOUT 

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.

KEY POINTS 

Leadership 

Polycab has 25 manufacturing facilities at seven locations. 4 of the 25 facilities manufacture FMEG products. Comprehensive backward integration remains a key priority for the company.

Polycab is No 1 manufacturer of wires and cables in India with a market share of over 18%.

It has network of 3500+ dealers and distributors and reach to over 125,000 retail outlets.

Revenue Breakup 

In FY 20, 84% of the revenue came from wires and cables and 9% from FMEG. In FY16, 91.3% revenue was from wires and cables and only 3.8% from FMEG.

FMEG revenue has grown at 47% CAGR during FY15-FY20.

• Market Cap₹ 20,374 Cr.
• Current Price₹ 1,366
• High / Low₹ 1,444 / 624
• Stock P/E25.3
• Book Value₹ 283
• Dividend Yield0.51 %
• ROCE29.3 %
• ROE22.4 %
• Face Value₹ 10.0
• Industry PE17.4
• Pledged percentage0.00 %
• Profit growth17.4 %
• Sales growth-12.5 %
• PEG Ratio0.72
• Sales growth 5Years13.4 %
• CMP / FCF56.4
• Debt to equity0.05
• Reserves₹ 4,065 Cr.
• Profit Var 5Yrs35.4 %
• Free Cash Flow 3Yrs₹ 1,083 Cr.
• Price to book value4.84
• Price to Sales2.54
• Return on assets20.8 %
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PROS

• Company has reduced debt.
• Company is almost debt free.
• Company has delivered good profit growth of 35.36% CAGR over last 5 years

Key Figures

as of March 2020

#1

Manufacturer of cables and wires in India

>18%

Market share of India’s organised cables and wires industry

25

Manufacturing facilities

3,500+

Dealers and distributors

1,25,000+

Retail outlets

40+

Countries where we exported in past few years

47%

5-year top-line CAGR of FMEG business

>95%

Sales from products manufactured in India

Our People

At Polycab, human capital is viewed as a key driver of business growth. 

In today’s world, where innovation and intellectual capital have become 

vital for organisation’s success, an increasing importance is being accorded 

to human resources. Polycab, as a brand, has always embraced it and 

centred its operations around it. We have invested considerable time and 

effort in ensuring our people practices are best in the industry.