CD Equisearch is bullish on Polycab India recommended buy rating on the stock with a target price of Rs 1099 in its research report dated June 25, 2020.
CD Equisearch's research report on Polycab India
Burgeoning demand for electricity on the backdrop of robust economic growth, fast paced urbanization and rise in per capita consumption, has stimulated India to strengthen and expand its existing generation and transmission & distribution capabilities. T&D segment is poised to experience robust growth as the demand for energy rises. T&D accounts for a major share in the demand for power cables. Polycab has undertaken a large amount of capital expenditure over the last 5 years, including most recently in FY20 when it spent almost Rs. 300 cr majority of which went into the wires and cables business.
Outlook
Polycab won an order from Dangote worth Rs. 950 cr to supply wires and cables to the African company for its oil and gas projects which is expected to be completed by Q1FY21. Weighing odds, we advise buy rating on the stock with target price of Rs 1099 based on 18x FY22e EPS of Rs 61.08 over a period of 9-12 months.
For all recommendations report, click here
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