Polycab India Q4 review, ICICI Securities

We believe Polycab India Ltd. is on a strong footing to report healthy earnings compound annual growth rate of 18.8% over FY23-25 as-

distribution rejig is over and benefits will likely be realised in FY24-25, commodity prices have corrected and it will potentially lead to better margins, there is strong revival in International business and commencement of Halol plant for fans and launch of multiple variants of BLDC fans to drive premiumisation.

We note Polycab’s share of voice is higher in fast moving electrical goods sector than its peers and we model Polycab to gain market share over FY24-FY25.

We raise FY24-25 earnings estimates to factor in strong Q4 FY23 and correction in commodity prices. We remain positive on Polycab due to its competitive advantages and growth opportunity in consumer durables. However, we see limited stock price upside at current valuations (28.2 times FY25E). Bloomberg