Mehabe score: 5 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
Polycab is India’s leading manufacturers of cables and wires and allied products such as uPVC conduits and lugs and glands. We have a range of cables and wires for practically every application. More recently Polycab has also launched a wide range of consumer electrical products like Fans, Switches, Switchgear, LED lights and Luminaries, Solar Inverters, and Pumps.
Main Points
Leadership #
Polycab has 25 manufacturing facilities at seven locations. 4 of the 25 facilities manufacture FMEG products. Comprehensive backward integration remains a key priority for the company.Site:POLYCAB
Market Cap:
Rs 29,457 cr
Price:
1975.0
Trading pe:
33.7x
Book-value:
319/share
Div yield:
0.51 %
Earning yield:
3.86%
Face-value:
10.0/share
52week high:
2012.00
52week low:
768.00
Technical Analysis
Stock trades at 1975.0, above its 50dma 1713.22. It also trades above its 200dma 1340.02. The stock remains bullish on techicals
The 52 week high is at 2012.00 and the 52week low is at 768.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 36.45% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 11.40% over past five years.
Competition
– The industry trades at a mean P/E of 37.1x. Paramount Comm. trades at the industry’s max P/E of 101.48x. POLYCAB trades at a P/E of 33.7x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. POLYCAB has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 17.5%. The max 1- month return was given by Paramount Comm.: a return of 44.0 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 3037.0 cr compared to Rs 2129.0 cr for period ended Mar 2020, a rise of 42.6%
Operating Profits reported at Rs 421.0 cr for period ended Mar 2021 vis-vis 295.0 for period ended Mar 2020 .
Operating Margins expanded 0.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 18.87 compared to Rs 17.61 for previous quarter ended Dec 2020 and Rs 14.37 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 8927.0 cr for period ended Mar 2021 vis-vis sales of Rs 8830.0 cr for the period ended Mar 2020, a growth of 1.1%. The 3 year sales cagr stood at 9.7%.
Net Profit reported at Rs 882.0 cr for period ended Mar 2021 vis-vis sales of Rs 759.0 cr for the period ended Mar 2020, rising 13.9%.
Company recorded a healthy Net Profit CAGR of 35.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1238.0 cr for period ended Mar 2021 vis-vis Rs 245.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 20.0% compared to 21.0% over the last 3 Years. – The stock has given a return of 150% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 1% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 17% vis-vis a compounded profit growth of 35% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.38% vis-vis 6.97% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 15.29% vis-vis 14.3% for Dec 2020
Conclusion
– is almost debt free.
– has delivered good profit growth of 36.45% CAGR over last 5 years – The company has delivered a poor sales growth of 11.40% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1713.22 and is trading at 1975.0, thus bullish price action wise.
