Polycab Q4 Results Review - Robust Volume Growth To Drive Revenue: Prabhudas Lilladher

Prabhudas Lilladher Report

Polycab India Ltd. reported healthy revenue growth of 29.3% YoY in Q4 FY24, on account of robust volume growth in wire and cables domestic business. Growth was largely from cable business on the back of government and private capex and uptick in real estate.

The company expects sustained volume growth in domestic cable and wires business on the back of strong demand environment, supported by government's continuous focus on infrastructure development and pickup in private capital expenditure.

Accordingly, Polycab is expected to achieve Rs 200 billion revenues sooner than targeted by FY26E under Project LEAP. We expect revenue /Ebitda /profit after tax compound annual growth rate of 17.9%/17.4%/16.6% over FY24-26E led by strong domestic demand environment supported by government measures and revival in private capex and expected improvement in international business.

FMEG segment reported impressive growth on back of strong season, expected to continue in coming years.

We upward revise our FY25/FY26 earnings by 4.4%/5.0% with improvement in domestic as well as international business. Maintain ‘Buy’, with revised target price of Rs 7,086 valuing at SOTP, implied PE of 44 times FY26E earnings.

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