Choice Broking has come out with its report on Polycab India. The research firm has recommended to "Subscribe" the IPO in its research report as on April 04, 2019
Key competitive strengths: • Market leader in wires and cables in India • Diverse suite of electrical products with varied applications across a diverse customer base • Strong distribution network • Manufacturing facilities with high degree of backward integration • Strong brand in the electrical industry • Experienced and committed management team
Valuation and Outlook
Coming to the valuation, based on the higher price band, PIL is demanding a P/E valuation of 14.6x (to its TTM EPS of Rs. 36.8), which is at a discount to its peer average of 20.1x. Based on FY19E and FY20E EPS, the stock is valued at P/E multiple of 17.2x and 13.8x, respectively, which again is available at discount to peer average. Thus, considering the above observations we feel that the issue is reasonably priced, thereby providing a “SUBSCRIBE” rating.
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