Polycab India - FMEG Scale-Up; Rising Cash To Drive Transformation: Nirmal Bang Initiates Coverage

Polycab India - FMEG Scale-Up; Rising Cash To Drive Transformation: Nirmal Bang Initiates Coverage

Polycab India wires. (Image: Company Website)

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Nirmal Bang Report

Having attained industry leadership in cables and wires with 18%-20% market share, Polycab India Ltd. has also successfully established itself in fast moving electrical goods category over the past five years with likely revenue of Rs 10 billion in FY21E.

The cables and wires industry is one of the key beneficiaries of revival in capex and also offers more relative resilience amid inflationary commodity costs.

The FMEG segment continues to offer robust growth prospects for the company while its margin profile is also likely to rise to high single digit over the next two years from 4.7% in nine months-FY21.

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Nirmal Bang Polycab India - Initiating Coverage - 24 April 2021.pdf
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