Buy Polycab India, target price Rs 3285: Axis Securities

Axis Securities has buy call on Polycab India with a target price of Rs 3285. The current market price of Polycab India is Rs 3035.2.Axis Securities recommended to keep stop loss at Rs 2900.

Polycab India, incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 45342.42 Crore) operating in Consumer Durables sector.

Polycab India key Products/Revenue Segments include Cables & Wires, Income from Eng.Construction Contracts, Scrap, Grants, Export Incentives and Job Work for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3754.86 Crore, up 12.75 % from last quarter Total Income of Rs 3330.14 Crore and up 10.64 % from last year same quarter Total Income of Rs 3393.64 Crore. Company has reported net profit after tax of Rs 361.64 Crore in latest quarter.

The company’s top management includes Mr.Inder T Jaisinghani, Mr.Bharat A Jaisinghani, Mr.Nikhil R Jaisinghani, Mr.Rakesh Talati, Mr.Sutapa Banerjee, Mr.R S Sharma, Mr.T P Ostwal, Mr.Pradeep Poddar. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 15 Crore shares outstanding.

Investment Rationale
Strong uptrend forming a series of higher tops and bottoms with rising volumes.

Promoter/FII Holdings
Promoters held 66.61 per cent stake in the company as of 31-Dec-2022, while FIIs owned 8.12 per cent, DIIs 10.06 per cent.