Buy Polycab India, target price Rs 2025: ICICI Direct

ICICI Direct has buy call on with a target price of Rs 2025. The current market price of Polycab India Ltd. is Rs 1746.5. Time period given by analyst is one year when Polycab India price can reach defined target.

Polycab India Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 26021.23 Crore) operating in Consumer Durables sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3064.79 Crore, up 8.17 % from last quarter Total Income of Rs 2833.30 Crore and up 40.86 % from last year same quarter Total Income of Rs 2175.84 Crore. Company reported net profit after tax of Rs 282.48 Crore in latest quarter.
Investment Rationale
The brokerage revises revenue, PAT estimate downward by ~4% each in FY22 to factor in lockdown impact. It builds in revenue, PAT CAGR of 18%, 16%, respectively, in FY21-23E considering a revival in government’s infra spending along with focus on profitable growth of FMEG business. It believes strong brand and a healthy balance sheet would help it to attain its long term growth target.

Promoter/FII Holdings
Promoters held 68.5 per cent stake in the company as of Sept 30, 2020, while FIIs held 6.1 per cent, DIIs 12.2 and public and others 13.1 per cent.

(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)