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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Polycab India Ltd

Basic Stock Data

Last Updated: June 24, 2024, 8:18 pm

Market Cap 1,09,154 Cr.
Current Price 7,261
High / Low7,295/3,416
Stock P/E61.2
Book Value 545
Dividend Yield0.28 %
ROCE32.3 %
ROE24.1 %
Face Value 10.0
PEG Ratio3.32

Competitors of Polycab India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Advait Infratech Ltd 1,786 Cr. 1,7511,950/30083.7 73.00.00 %40.0 %34.0 % 10.0
Universal Cables Ltd 2,543 Cr. 733744/36123.5 5120.41 %10.0 %6.62 % 10.0
Cybele Industries Ltd 42.1 Cr. 39.349.4/20.0 55.50.00 %1.56 %0.16 % 10.0
BC Power Controls Ltd 32.7 Cr. 4.687.27/3.5145.4 5.830.00 %4.88 %1.79 % 2.00
Delton Cables Ltd 385 Cr. 445493/73.839.5 82.60.00 %18.4 %15.2 % 10.0
Industry Average7,355.11 Cr1,234.5789.51180.420.07%14.58%11.15%7.71

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,7462,9431,8553,0073,3723,9702,7373,3323,7154,3243,8894,2184,340
Expenses2,3962,5391,7232,7143,0103,4942,4272,9063,2123,7213,3413,6093,771
Operating Profit350404132293362476310427503603549609570
OPM %13%14%7%10%11%12%11%13%14%14%14%14%13%
Other Income52362530901744-24052643571
Interest713105813814928252732
Depreciation45464951515051525253576062
Profit before tax35038198267392430295358481573530557546
Tax %25%26%23%25%19%24%24%24%25%25%24%23%24%
Net Profit26428375201316325223271361428403430417
EPS in Rs17.6118.874.9613.2621.0521.5614.6917.9123.8928.3626.6728.3727.49

Last Updated: June 11, 2024, 3:12 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:54 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales3,9864,7075,2025,5006,7707,9868,8308,79212,20414,10818,039
Expenses3,6874,2664,7105,0206,0417,0357,7017,68110,94012,26515,548
Operating Profit2994424924807299501,1291,1111,2641,8432,492
OPM %8%9%9%9%11%12%13%13%10%13%14%
Other Income853275656491164161133221
Interest94108147669411750433560108
Depreciation7198111128133141161176202209245
Profit before tax1422412653615677561,0101,0561,1881,7072,359
Tax %37%32%30%36%37%34%24%16%23%25%24%
Net Profit891641852333595007668869171,2821,803
EPS in Rs12.6511.6413.0916.4825.3535.3950.9759.1560.8084.80118.75
Dividend Payout %8%9%13%6%0%8%14%17%23%24%25%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)84.27%12.80%25.95%54.08%39.28%53.20%15.67%3.50%39.80%40.64%
Change in YoY Net Profit Growth (%)0.00%-71.46%13.14%28.13%-14.80%13.92%-37.53%-12.17%36.30%0.84%

Growth

Compounded Sales Growth
10 Years:16%
5 Years:18%
3 Years:27%
TTM:28%
Compounded Profit Growth
10 Years:35%
5 Years:29%
3 Years:27%
TTM:47%
Stock Price CAGR
10 Years:%
5 Years:64%
3 Years:54%
1 Year:101%
Return on Equity
10 Years:19%
5 Years:21%
3 Years:21%
Last Year:24%

Last Updated: June 17, 2024, 2:49 pm

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

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

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-159.00-104.00-304.00-376.00-71.00678.00-156.00-281.00-117.00-190.00-159.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters68.40%68.36%68.15%68.08%67.99%67.97%66.61%66.21%65.99%65.91%65.78%65.24%
FIIs6.51%6.89%6.43%5.75%5.71%6.44%8.12%9.78%9.66%12.41%13.41%11.96%
DIIs8.80%8.78%8.66%9.18%9.03%10.35%10.10%9.34%9.75%8.08%7.61%7.23%
Public16.29%15.97%16.77%16.98%17.27%15.24%15.16%14.67%14.61%13.58%13.18%15.58%
No. of Shareholders1,73,7432,60,2733,03,9123,23,6973,29,4743,26,7743,24,5313,14,1073,09,2293,17,4683,37,3804,23,787

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Canara Robeco Emerging Equities848,8622.37447.17239,9912024-06-23253.71%
Nippon India Growth Fund602,2541.48317.26239,9912024-06-23150.95%
HSBC Small Cap Fund - Regular Plan436,5241.8229.96239,9912024-06-2381.89%
DSP Mid Cap Fund427,6121.41225.26239,9912024-06-2378.18%
UTI Mid Cap Fund365,0332.04192.3239,9912024-06-2352.1%
DSP Flexi Cap Fund349,5021.95184.11239,9912024-06-2345.63%
Sundaram Mid Cap Fund321,0061.82169.1239,9912024-06-2333.76%
Sundaram Mid Cap Fund - Institutional Plan321,0061.82169.1239,9912024-06-2333.76%
UTI Flexi Cap Fund273,2100.56143.92239,9912024-06-2313.84%
DSP Equity & Bond Fund239,9911.5126.42239,9912024-06-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)118.9384.8760.8759.2051.16
Diluted EPS (Rs.)118.4984.6160.6058.9650.97
Cash EPS (Rs.)136.32100.2075.0371.1862.73
Book Value[Excl.RevalReserv]/Share (Rs.)548.69445.25372.58320.03258.51
Book Value[Incl.RevalReserv]/Share (Rs.)548.69445.25372.58320.03258.51
Revenue From Operations / Share (Rs.)1200.74941.99816.62589.61593.10
PBDIT / Share (Rs.)180.56132.5790.6882.5182.47
PBIT / Share (Rs.)164.25118.6077.1970.7071.66
PBT / Share (Rs.)157.04114.6174.8467.8468.34
Net Profit / Share (Rs.)120.0186.2461.5559.3751.92
NP After MI And SOA / Share (Rs.)118.7584.8060.8059.1550.98
PBDIT Margin (%)15.0314.0711.1013.9913.90
PBIT Margin (%)13.6712.599.4511.9912.08
PBT Margin (%)13.0712.169.1611.5011.52
Net Profit Margin (%)9.999.157.5310.068.75
NP After MI And SOA Margin (%)9.889.007.4410.038.59
Return on Networth / Equity (%)21.7919.1516.3918.5519.79
Return on Capital Employeed (%)29.0226.1220.3421.0826.99
Return On Assets (%)14.7613.4712.2512.5712.73
Long Term Debt / Equity (X)0.000.000.000.020.00
Total Debt / Equity (X)0.010.020.010.050.03
Asset Turnover Ratio (%)1.681.671.691.381.52
Current Ratio (X)2.442.632.952.372.02
Quick Ratio (X)1.411.511.691.381.06
Inventory Turnover Ratio (X)3.823.854.442.943.02
Dividend Payout Ratio (NP) (%)0.0016.4916.410.0019.60
Dividend Payout Ratio (CP) (%)0.0014.1613.430.0016.17
Earning Retention Ratio (%)0.0083.5183.590.0080.40
Cash Earning Retention Ratio (%)0.0085.8486.570.0083.83
Interest Coverage Ratio (X)25.0433.2338.5128.8224.79
Interest Coverage Ratio (Post Tax) (X)17.6422.6125.0920.7116.61
Enterprise Value (Cr.)75857.6942607.1335046.6020316.8510901.13
EV / Net Operating Revenue (X)4.213.022.872.311.23
EV / EBITDA (X)27.9621.4625.8616.518.88
MarketCap / Net Operating Revenue (X)4.223.062.902.341.25
Retention Ratios (%)0.0083.5083.580.0080.39
Price / BV (X)9.306.506.384.332.88
Price / Net Operating Revenue (X)4.223.062.902.341.25
EarningsYield0.020.020.020.040.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 8,060.82

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.02% compared to the current price 7261

Intrinsic Value: 9,546.48

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 31.48% compared to the current price ₹7261

Last 5 Year EPS CAGR: 18.43%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.10%, which is a positive sign.
  2. The company has higher reserves (3,592.09 cr) compared to borrowings (421.55 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (8.18 cr) and profit (212.55 cr) over the years.
  1. The stock has a high average Working Capital Days of 78.60, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 83.40, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Polycab India Ltd:
    1. Net Profit Margin: 9.99%
      • 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: 29.02% (Industry Average ROCE: %)
      • 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. ROE%: 21.79% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 17.64
      • 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.
    5. Quick Ratio: 1.41
      • 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.
    6. ✗ Stock P/E: 61.2 (Industry average Stock P/E: )
      • 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.
    7. Total Debt / Equity: 0.01
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Polycab India Ltd?

The latest fair value of Polycab India Ltd is ₹8060.82.

What is the Market Cap of Polycab India Ltd?

The Market Cap of Polycab India Ltd is 1,09,154 Cr..

What is the current Stock Price of Polycab India Ltd as on 24 June 2024?

The current stock price of Polycab India Ltd as on 24 June 2024 is ₹7,261.

What is the High / Low of Polycab India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Polycab India Ltd stocks is 7,295/3,416.

What is the Stock P/E of Polycab India Ltd?

The Stock P/E of Polycab India Ltd is 61.2.

What is the Book Value of Polycab India Ltd?

The Book Value of Polycab India Ltd is 545.

What is the Dividend Yield of Polycab India Ltd?

The Dividend Yield of Polycab India Ltd is 0.28 %.

What is the ROCE of Polycab India Ltd?

The ROCE of Polycab India Ltd is 32.3 %.

What is the ROE of Polycab India Ltd?

The ROE of Polycab India Ltd is 24.1 %.

What is the Face Value of Polycab India Ltd?

The Face Value of Polycab India Ltd is 10.0.

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