Polycab India Limited: Value Pick Stock October 2019, Update
Update
“Q2 FY 2022-23 Numbers“
Polycab India Limited (PIL) – one of the fastest growing FMEG companies in the country has posted its Q2 FY2022-23 numbers today.
Revenue of the company grew by 11 percent Y-O-Y to INR 3332.4 Cr in spite of high base, declining commodity prices, and escalating inflation on the back of healthy volume growth in Cables and Wires business,
- Cables and Wires business revenue grew by 13 percent Y-O-Y basis to INR 2925.9 Cr. Domestic distribution driven business of the company continued to see strong momentum, while Institutional business too saw healthy growth during the quarter.
- Exports oriented business showed strong growth of 75 percent Y-O-Y basis on a healthy base, contributing 13 percent to consolidated revenue of the company in Q2 FY2022-23.
- FMEG business of the company de-grew by 12 percent Y-O-Y to INR 303.2 Cr mainly due to subdued demand environment.
Profit After Tax of the company grew by 37 percent Y-O-Y to INR 270.5 Cr from INR 197.8 Cr in Q2 FY2022-23, while PAT margin stood at 8.1 percent for the quarter.
Chairman & MD Speech –
Commenting on the performance, Mr. Inder T. Jaisinghani said: “We continued with our strong business performance in Q2, posting highest ever 2nd quarter revenue in the history of the Company.
Combined with the stand-out performance of Q1, our top-line for first half of the year grew by 25% Y-O-Y. Margin expansion was supported by strong growth in exports and judicious price revisions. We are also progressing well on our long-term strategic agenda of focusing on sustainable value creation across B2B and B2C businesses through Project LEAP.
Strong domestic economy with structural reforms focused on infrastructure development augurs well for most of our product categories. We remain committed to achieving 200 Billion sales by FY 2026 and make Polycab a future ready organization”
Polycab India – Daily Chart
polycab india share ended at INR 2767.80 (UP 5.70%) with a volume of 13,15,807 shares on the National Stock Exchange.
The stock is currently trading above all its short and long-term moving averages on the daily chart.
Polycab India Ltd is one of the value pick stock of Finblab (generated more than 4x returns) and is maintaining a positive view of the company.
Also Read: Important Quarterly Results For The Week: 17 To 22 October ’22
Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I (Vishal Dalwadi) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.
19 July 2022
Update
Q1 Result FY 2022-23
Polycab India Limited (PIL) – India’s largest manufacturer of Wires and Cables today announced its consolidated results for the first quarter ended June 30, 2022.
Revenue from Operations
On a consolidated basis, the company has generated revenue of INR 2736.56 Cr for the first quarter ended 30 June 2022 as compared to INR 3969.98 Cr for the quarter ended 31 March 2022, registering a fall of 31.07% Q-O-Q basis.
On a year-on-year basis, the company’s revenue from operation surged by 47.51% (revenue of INR 1855.23 Cr for a period one year ago)
Segment wise Revenues are as follows –
- Wires & Cables business saw a strong growth of 48% Y-O-Y. Export contributed 6.7% to consolidated revenue & posted healthy revenue growth of 62% Y-O-Y.
- FMEG business grew by 59% Y-O-Y to INR 305.2 Cr. Lighting, switchgears and pump continued their strong growth momentum, while Fans, Conduit Pipes and Solar business posted healthy growth. However, switches saw a decline due to supply challenges.
Must Read: HOW THE NIFTY WILL BEHAVE IN JULY 2022
Expenses
Total expenses of the company stood at INR 2484.88 Cr for the period ended 30 June 2022 as against INR 3556.64 Cr for the period ended 31 March 2022. However, the company’s expenses were INR 1780 Cr a period one year ago.
PAT
The company’s profit after tax stood at INR 222.55 Cr for the first quarter ended 30 June 2022 as compared to INR 75.26 Cr a period one year ago, registering a jump of 195.71% year-on-year basis. However, quarter-on-quarter PAT de-grew by 31.59% (PAT of INR 325.34 Cr for the quarter ended 31 March 2022)
The Earnings Per Share (EPS) of the company are as follows –
- INR 14.70 as on 30 June 2022
- INR 21.57 as on 31 March 2022, and
- INR 4.96 as of June 30, 2021
Chairman and MD said –
Commenting on the performance, the Chairman and MD of the company said; “We have started the fiscal year 2023 on solid footing, with top-line growth of 48 percent fuelled by strong performance across B2B and B2C categories.
Furthermore, we recorded the highest 1st quarter top-line in the history of the company which underlines our strategy to be agile, focus on robust execution and consistently deliver the best quality of products to our customers.
Profitability was supported by better operating leverage and various strategic initiatives implemented over the past few quarters.
We will strive to continue the path of profitable and sustainable growth and contribute to the success of all our stakeholders.”
Chairman also said, “We remain committed to achieving Rs 200 Bn sales by FY 2026 and make Polycab a future-ready organization.”
Daily Chart –
polycab india share ended INR 2251.75 up by 4.57% today with a volume of 21,89,907 on the National Stock Exchange.
The stock is currently trading 20% below when compared to its 52-week high of INR 2820.
Polycab India Ltd is a value pick stock of Finblab (generated more than 3x returns) and is maintaining a positive view of the company.
Also Read: IMPORTANT QUARTERLY RESULTS FOR THE NEXT WEEK – 18 TO 24 JULY ’22
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21 July 2020
Update:
Q1 Numbers FY 2020-21
Polycab India Limited has posted its financial results for the period ended June 30, 2020 today after market hours.
On consolidated basis, the company has posted total income of INR 1010.22 Cr during the period ended June 30, 2020 as compared to INR 1984.88 Cr during the period ended June 30, 2019.
Polycab India has posted net profit of INR 117.60 Cr for the period ended June 30, 2020 as against net profit of INR 135.27 Cr for the period ended June 30, 2019.
The company has reported EPS of 7.87 for the period ended June 30, 2020 as compared to 9.12 for the period ended June 30, 2019.
Shares of Polycab India closed at INR 849.65 on the National Stock Exchange up 0.84% as compared to the previous close of INR 842.35.
The total number of shares traded during the day was 294315.
FINBLAB continue to be bullish on the stock and recommend accumulating it on every decline.
Read: Finblab Valuepick Stock of the Month – Escorts Ltd
30 May 2020
Update:
Q4 Results FY ’20
Wires and cables manufacturer major “Polycab India Limited” posted its Q4 numbers today.
The company’s revenue from operations (on STANDALONE basis) stood at INR 2123.78 Cr for the quarter ended 31 March, 2020 as against INR 2503.47 Cr for the period ended 31 December, 2019.
For Y-O-Y basis the company’s revenue increased by 10.92% (INR 8806.91 Cr for FY 20 vs INR 7940.12 Cr for FY 19)
The wire and cable segment registered a revenue growth of 7.42% (INR 7589.84 Cr vs INR 7064.79 Cr) while the FMEG segment registered a revenue growth of 29.89% (INR 835.58 Cr vs INR 643.29 Cr)
The company has reported a net profit of INR 219.13 Cr for the quarter ended 31 March, 2000 as compared to INR 216.16 Cr for the quarter ended 31 December, 2019.
Year-on-year profit of the company grew by 51.77 Cr (INR 760.95 Cr vs INR 501.44 Cr)
FINBLAB continue to be bullish on the stock and recommending to accumulate it on every decline.
1 October, 2019
Polycab India Limited is one of the largest manufacturer in the wires and cables industry in India (According to CRISIL Research), in terms of revenue from the wires and cables segment and provide one of the most extensive ranges of wires and cables in India.
Polycab India Limited: History
In the year 1964, Late Thakurdas Jaisinghani had established Sind Electric Stores, which dealt in various electrical products including fans, lighting, switches, and wires.
In the year 1983, Polycab Industries, a partnership firm founded by Girdhari T. Jaisinghani, Inder T. Jaisinghani, Ajay T. Jaisinghani and Ramesh T. Jaisinghani, was registered as a small scale industrial unit by the Directorate of Industries, Government of Gujarat in respect of a factory located at Halol for manufacturing/processing activity of ‘PVC insulated wires and cables, copper and aluminum and bare copper wire.
In 1996, the Company was incorporated as ‘Polycab Wires Private Limited’ at Mumbai as a private limited company under the Companies Act, 1956. In 2000, the Company became a deemed public limited company under Section 43A (1) of the Companies Act, 1956, and the word ‘private’ was struck off from the name of the Company with effect from June 30, 2000.
Later, the Company was converted into a public limited company, the word ‘private’ was struck off from the name of the Company and consequently, a fresh certificate of incorporation dated August 29, 2018, was issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana “RoC”, recording the change of the Company’s name to Polycab India Limited
Business:
Polycab India Limited is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (FMEG) under the “POLYCAB” brand.
For Fiscal 2018, Polycab India Limited has a market share of approximately 18% of the organized wires and cables industry and approximately 12% of the total wires and cables industry in India (Source: CRISIL Research)
Polycab India: Products
- Conduits and Accessories: The Company sells uPVC conduits and accessories. uPVC accessories that the company sells include bending springs, circular boxes, circular lids, couplers, deep circular boxes, fan boxes, inspection bends, inspection elbows, inspection tees, junction boxes, reducers, round tees, saddle plates, saddle straps, slip type bends and space bar saddles.
- Electrical Fans: The portfolio of electrical fans include ceiling fans, table wall pedestal (TPW), exhaust fans and air circulators.
- Lighting and Luminaires: Polycab manufacture, sell and trade a range of LED lamps (including down-lighters) and luminaires at varied wattages. The lighting product portfolio comprises a range of LED domestic products and LED luminaires for consumer, commercial and outdoor lighting.
- Solar Products: As part of promoting the use of renewable energy, the company has ventured into the sale of solar inverters; solar water pumping systems and electron-beam irradiated solar cables manufactured by third-party manufacturers.
- Switches and Switchgears: Portfolio of switches and switchgear includes miniature circuit breakers (MCB), isolators, residual current circuit breakers (RCCBs), Residual Current Breaker with Overcurrent (RCBOs), distribution boards and a range of sockets and modular switches that are available for varied range of wattages, voltages, and amperage and with different breaking capacities. The sockets and switches are sold under the brand LEVANA
- Wires and Cables: The Company manufacture and sell a diverse range of wires and cables and its key products in the wires and cables segment are building wires, control cables, flexible cables, instrumentation cables, power cables, solar cables, flexible/single multi-core cables, communication cables and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signaling cables, specialty cables and green wires.
Manufacturing Facilities
Polycab has 24 manufacturing facilities, including 2 major joint ventures with Techno Electromech Pvt Ltd. (Techno) and Trafigura Pte Ltd (Trafigura), located across the states of Gujarat, Maharashtra and Uttarakhand and the union territory of Daman and Diu.
Distribution Network
Polycab manages sales and marketing activities through its corporate office, 3 regional offices, and 20 local offices in various parts of India (as on June 30, 2018). In addition, in Fiscal 2018, the company has exported its products to over 40 countries.
The Company’s distribution network in India comprises over 3,300 authorized dealers and distributors and 29 warehouses (as on March 31, 2018).
Listed On
The shares of Polycab India Limited are currently listed at Bombay Stock Exchange (BSE); CODE 542652 and National Stock Exchange (NSE) as POLYCAB
Stock Info: Polycab India
Share Holding Pattern
Financials: Polycab India
Conclusion
Polycab is one of the largest manufacturers in the wires and cables industry in India.
Promoters of the company are having more than 68 percent stake with zero percent pledge shares.
Along with this, some of the top institutions like International Finance Corporation, Theleme Master Fund Limited, and L&T Large and Midcap Fund is having more than 1 percent stake in the company.
On the technical front, the share price of Polycab India Limited is trading well above its 50 and 200 EMA on the daily chart.
Keeping the above listed factors in mind, Polycab India Limited looks good at INR 655. Finblab recommends investing in the stock in staggered manner for medium to long term.
Value Pick : September 2019
Dr Lal Pathlabs Limited
Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I (Vishal Dalwadi) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.
