Polycab India Q3 Review - Strong Traction In B2C Portfolio, Key To A Re-Rating: Anand Rathi
Cabled components for electronic switches sit in a box at a factory. (Photographer: Stefan Wermuth/Bloomberg)

Polycab India Q3 Review - Strong Traction In B2C Portfolio, Key To A Re-Rating: Anand Rathi

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BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Polycab India Ltd.’s Q3 revenue/profit after tax rising 12%/20% YoY was driven by its business-to-consumer portfolio (wires, fast moving electrical goods) while rising raw material costs weighed on the gross margin (down 319 basis points).

Business-to-business is expected to revive due to the infra-focus in the coming Union budget. Exports prospect look bright due to growing traction in many countries.

We introduce FY23e and expect 13%/18% compound annual growth rates in revenue/profit after tax (FY20-23) with the return on equity nearing 20% and healthy free cash flows.

Click on the attachment to read the full report:

Anand Rathi Polycab India Q3FY21 Result Update.pdf

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