Buy Polycab India; target of Rs 8934: Geojit Financial Services

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • Strong domestic momentum in the wires and cables segment, driven by government and private sector demand, with revenue growth of 47.2% YoY to Rs. 8,377cr.
  • Healthy order pipeline in the EPC segment, with revenue rising 53.4% YoY to Rs. 617cr, aided by steady execution of projects and a strong order book.
  • FMEG revenue increased 123.8% YoY to Rs. 993cr, with a record EBIT margin of 10.1%, driven by product innovation, deeper market penetration, and solar-led growth.
  • Export revenue grew 17% YoY and 85% QoQ, with a strong order pipeline from the US, Europe, Latin America, and the Middle East.

Thesis Validation Checklist

  • Monitor domestic demand trends in the wires and cables segment, particularly in government and private sector projects.
  • Track the execution of EPC projects and the order pipeline.
  • Watch for FMEG revenue growth and margin expansion, driven by product innovation and deeper market penetration.
  • Keep an eye on export revenue growth and the order pipeline from key geographies.
  • Observe the progress of the EHV cable plant commissioning and its commercial contribution.