Polycab India - High Infrastructural Spends To Drive Growth: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We hosted the management of Polycab India Ltd. They stated that growth in renewable energy capacities and infrastructure development is expected to boost demand for cables (domestic plus exports) while continued uptick in residential real estate is expected to boost demand for wires in India. Focus is on enhancing market presence through increased advertising and promotion spends. Polycab is targeting ~3-5% of B2C topline annually, with anticipated margin implications. A&P for 9M FY24 stood at ~2.2% of B2C topline. Due to the ~8% catch-up in the stock price from our last published note (January 19, 2024), we downgrade Polycab to 'Accumulate' with a target price of Rs 5,255 (36 times price-to-earning on Dec-25E earnings per share). While we remain structurally positive about the company’s long-term business prospects, we await clarity on the recent turn of events. We will revert to our original multiple once we see a revival in fast moving electrical goods and derive adequate comfort on the recent events getting addressed to investors’ satisfaction..Click on the attachment to read the full report:.Coal India - Robust Demand To Drive Volumes; E-Auction Premium Softens Amid High Supply: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Polycab India - High Infrastructural Spends To Drive Growth: Nirmal Bang

Increasing electricity consumption in India is expected to drive demand for higher voltage cables, boosting extra high voltage demand.

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