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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Polycab India Ltd

About the Company - Polycab India Ltd

Polycab India Ltd. is a Public Limited Listed company incorporated on 01/01/1996 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L31300GJ1996PLC114183 and registration number is 266483. Currently Company is involved in the business activities of Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus. Company’s Total Operating Revenue is Rs. 12097.91 Cr. and Equity Capital is Rs. 149.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - Power/OthersUnit No.4, Plot No.105, Halol Vadodara Road, Panchmahal Gujarat 389350shares@polycab.com
http://www.polycab.com
Management
NamePosition Held
Mr. Inder T JaisinghaniChairman & Managing Director
Mr. Bharat A JaisinghaniExecutive Director
Mr. Nikhil R JaisinghaniExecutive Director
Mr. Rakesh TalatiExecutive Director
Mr. Sutapa BanerjeeIndependent Director
Mr. R S SharmaIndependent Director
Mr. T P OstwalIndependent Director
Mr. Pradeep PoddarIndependent Director
Mr. Bhaskar SharmaIndependent Director
Mrs. Manju AgarwalIndependent Director
Mr. Gandharv TongiaExecutive Director

Polycab India Ltd. Share Price Update

Share PriceValue
Today₹4,305.70
Previous Day₹4,320.30

Basic Stock Data of Polycab India Ltd

Market Cap 71,153 Cr.
Current Price 4,737
High / Low5,733/2,754
Stock P/E42.7
Book Value 479
Dividend Yield0.43 %
ROCE27.0 %
ROE20.0 %
Face Value 10.0

Data Source: screener.in

Competitors of Polycab India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Advait Infratech Ltd 1,580 Cr. 1,5491,618/206 57.20.00 %28.7 %21.7 % 10.0
Diamond Power Infrastructure Ltd 1,586 Cr. 301313/22.1 1840.00 %11.4 %% 10.0
KEI Industries Ltd 28,832 Cr. 3,1953,420/1,55452.4 3170.09 %25.8 %20.2 % 2.00
Universal Cables Ltd 1,598 Cr. 460564/32515.9 4810.64 %12.0 %8.46 % 10.0
Industry Average8,399.00 Cr1,376.2517.08259.800.18%19.48%12.59%8.00

Polycab India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2,1142,7462,9431,8553,0073,3723,9702,7373,3323,7154,3243,8894,218
Expenses1,8012,3962,5391,7232,7143,0103,4942,4272,9063,2123,7213,3413,609
Operating Profit312350404132293362476310427503603549609
OPM %15%13%14%7%10%11%12%11%13%14%14%14%14%
Other Income3352362530901744-240526435
Interest117131058138149282527
Depreciation46454649515150515252535760
Profit before tax28835038198267392430295358481573530557
Tax %23%25%26%23%25%19%24%24%24%25%25%24%23%
Net Profit22226428375201316325223271361428403430
EPS in Rs14.8017.6118.874.9613.2621.0521.5614.6917.9123.8928.3626.6728.37

Polycab India Ltd Quarterly Chart

Polycab India Ltd Profit & Loss

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,9864,7075,2025,5006,7707,9868,8308,79212,20414,10816,771
Expenses3,6874,2664,7105,0206,0417,0357,7017,68110,94012,26514,441
Operating Profit2994424924807299501,1291,1111,2641,8432,330
OPM %8%9%9%9%11%12%13%13%10%13%14%
Other Income853275656491164161133222
Interest94108147669411750433560112
Depreciation7198111128133141161176202209233
Profit before tax1422412653615677561,0101,0561,1881,7072,207
Tax %37%32%30%36%37%34%24%16%23%25%
Net Profit891641852333595007668869171,2821,678
EPS in Rs12.6511.6413.0916.4825.3535.3950.9759.1560.8084.80110.89
Dividend Payout %8%9%13%6%0%8%14%17%23%24%

Polycab India Ltd Profit & Loss Yearly Chart

Polycab India Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:16%
3 Years:17%
TTM:22%
Compounded Profit Growth
10 Years:%
5 Years:28%
3 Years:18%
TTM:42%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:52%
1 Year:57%
Return on Equity
10 Years:%
5 Years:20%
3 Years:19%
Last Year:20%

Polycab India Ltd Balance Sheet

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital71141141141141141149149149150150
Reserves1,4121,4891,6421,8532,2062,7063,6884,6055,3946,4817,045
Borrowings458546796856800272157282118191213
Other Liabilities8231,1381,2961,7291,3002,5091,9671,9781,7502,6022,492
Total Liabilities2,7633,3143,8754,5794,4485,6285,9617,0157,4129,4249,900
Fixed Assets7508229851,1281,1971,2761,4221,8701,6752,0672,106
CWIP11617913816513619324199375251367
Investments000333229656357731,3501,279
Other Assets1,8972,3122,7523,2533,0834,1304,2324,4114,5885,7566,148
Total Assets2,7633,3143,8754,5794,4485,6285,9617,0157,4129,4249,900

Polycab India Ltd Reserves and Borrowings Chart

Polycab India Ltd Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3101502212963621,2302441,2525121,428
Cash from Investing Activity -109-173-247-295-188-408-262-1,012-427-1,203
Cash from Financing Activity -1961545-10-190-65111-175-201-227
Net Cash Flow4-820-8-15171-766-116-2

Polycab India Ltd Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days88849580706159603932
Inventory Days70959413412811611386104
Days Payable771011011209782774872
Cash Conversion Cycle81788894709194967765
Working Capital Days92869496885076736962
ROCE %17%17%16%22%28%29%24%21%27%

Polycab India Ltd Financial Efficiency Indicators Chart

Polycab India Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters68.44%68.42%68.40%68.36%68.15%68.08%67.99%67.97%66.61%66.21%65.99%65.91%
FIIs6.97%6.38%6.51%6.89%6.43%5.75%5.71%6.44%8.12%9.78%9.66%12.41%
DIIs10.29%9.91%8.80%8.78%8.66%9.18%9.03%10.35%10.10%9.34%9.75%8.08%
Public14.30%15.29%16.29%15.97%16.77%16.98%17.27%15.24%15.16%14.67%14.61%13.58%
No. of Shareholders1,30,1061,36,3081,73,7432,60,2733,03,9123,23,6973,29,4743,26,7743,24,5313,14,1073,09,2293,17,468

Polycab India Ltd Shareholding Pattern Chart

No. of Polycab India Ltd Shareholders

Polycab India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Canara Robeco Emerging Equities8488622.37447.17
Nippon India Growth Fund6022541.48317.26
HSBC Small Cap Fund - Regular Plan4365241.8229.96
DSP Mid Cap Fund4276121.41225.26
UTI Mid Cap Fund3650332.04192.3
DSP Flexi Cap Fund3495021.95184.11
Sundaram Mid Cap Fund3210061.82169.1
Sundaram Mid Cap Fund - Institutional Plan3210061.82169.1
UTI Flexi Cap Fund2732100.56143.92
DSP Equity & Bond Fund2399911.5126.42

Polycab India Ltd ROCE Trend

Polycab India Ltd EPS Trend

Polycab India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)84.8760.8759.2051.1635.39
Diluted EPS (Rs.)84.6160.6058.9650.9735.39
Cash EPS (Rs.)100.2075.0371.1862.7345.61
Book Value[Excl.RevalReserv]/Share (Rs.)445.25372.58320.03258.51202.21
Book Value[Incl.RevalReserv]/Share (Rs.)445.25372.58320.03258.51202.21
Revenue From Operations / Share (Rs.)941.99816.62589.61593.10563.43
PBDIT / Share (Rs.)132.5790.6882.5182.4771.99
PBIT / Share (Rs.)118.6077.1970.7071.6661.97
PBT / Share (Rs.)114.6174.8467.8468.3453.71
Net Profit / Share (Rs.)86.2461.5559.3751.9235.59
NP After MI And SOA / Share (Rs.)84.8060.8059.1550.9835.39
PBDIT Margin (%)14.0711.1013.9913.9012.77
PBIT Margin (%)12.599.4511.9912.0810.99
PBT Margin (%)12.169.1611.5011.529.53
Net Profit Margin (%)9.157.5310.068.756.31
NP After MI And SOA Margin (%)9.007.4410.038.596.28
Return on Networth / Equity (%)19.1516.3918.5519.7917.55
Return on Capital Employeed (%)26.1220.3421.0826.9929.07
Return On Assets (%)13.4712.2512.5712.738.87
Long Term Debt / Equity (X)0.000.000.020.000.03
Total Debt / Equity (X)0.020.010.050.030.06
Asset Turnover Ratio (%)1.671.691.381.521.58
Current Ratio (X)2.632.952.372.021.50
Quick Ratio (X)1.511.691.381.060.73
Inventory Turnover Ratio (X)3.854.442.943.023.27
Dividend Payout Ratio (NP) (%)16.4916.410.0019.600.00
Dividend Payout Ratio (CP) (%)14.1613.430.0016.170.00
Earning Retention Ratio (%)83.5183.590.0080.400.00
Cash Earning Retention Ratio (%)85.8486.570.0083.830.00
Interest Coverage Ratio (X)33.2338.5128.8224.798.71
Interest Coverage Ratio (Post Tax) (X)22.6125.0920.7116.615.31
Enterprise Value (Cr.)42607.1335046.6020316.8510901.130.00
EV / Net Operating Revenue (X)3.022.872.311.230.00
EV / EBITDA (X)21.4625.8616.518.880.00
MarketCap / Net Operating Revenue (X)3.062.902.341.250.00
Retention Ratios (%)83.5083.580.0080.390.00
Price / BV (X)6.506.384.332.880.00
Price / Net Operating Revenue (X)3.062.902.341.250.00
EarningsYield0.020.020.040.060.00

Polycab India Ltd Profitability Ratios (%)

Polycab India Ltd Liquidity Ratios

Polycab India Ltd Liquidity Ratios (%)

Polycab India Ltd Interest Coverage Ratios (%)

Polycab India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Polycab India Ltd

Fair Value: ₹4108.25

The stock is overvalued by 13.27% compared to the current price ₹4737

*Investments are subject to market risks

Strength and Weakness of Polycab India Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 20.10%, which is a positive sign.
  2. The company has higher reserves (3,501.91 cr) compared to borrowings (426.27 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (8.00 cr) and profit (212.55 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 80.02 and average Dividend Yield of 11.42%.
  2. The stock has a high average Working Capital Days of 78.60, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 83.40, which may not be favorable.

Should I Buy Polycab India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Polycab India Ltd:
    1. Net Profit Margin: 9.15%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 26.12% (Industry Average ROCE: 16.4%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 22.61
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.51
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 42.8 (Industry average Stock P/E: 23.33)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Polycab India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE