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POLY

Polycab India NSEI:POLYCAB Stock Report

Last Price

₹2.18k

Market Cap

₹321.7b

7D

-2.6%

1Y

11.0%

Updated

05 Jul, 2022

Data

Company Financials +
POLYCAB fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance1/6
Financial Health6/6
Dividends2/6

POLYCAB Stock Overview

Polycab India Limited manufactures and sells wires and cables under the POLYCAB brand in India and internationally.

Polycab India Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Polycab India
Historical stock prices
Current Share Price₹2,179.85
52 Week High₹2,820.00
52 Week Low₹1,762.00
Beta0.96
1 Month Change-11.17%
3 Month Change-17.86%
1 Year Change10.99%
3 Year Change256.53%
5 Year Changen/a
Change since IPO232.90%

Recent News & Updates

May 14
Many Would Be Envious Of Polycab India's (NSE:POLYCAB) Excellent Returns On Capital

Many Would Be Envious Of Polycab India's (NSE:POLYCAB) Excellent Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Apr 28
Is Now The Time To Look At Buying Polycab India Limited (NSE:POLYCAB)?

Is Now The Time To Look At Buying Polycab India Limited (NSE:POLYCAB)?

Polycab India Limited ( NSE:POLYCAB ), is not the largest company out there, but it saw a decent share price growth in...

Shareholder Returns

POLYCABIN ElectricalIN Market
7D-2.6%0.5%0.3%
1Y11.0%12.0%-0.3%

Return vs Industry: POLYCAB matched the Indian Electrical industry which returned 12% over the past year.

Return vs Market: POLYCAB exceeded the Indian Market which returned -0.3% over the past year.

Price Volatility

Is POLYCAB's price volatile compared to industry and market?
POLYCAB volatility
POLYCAB Average Weekly Movement5.0%
Electrical Industry Average Movement6.4%
Market Average Movement6.8%
10% most volatile stocks in IN Market9.8%
10% least volatile stocks in IN Market4.4%

Stable Share Price: POLYCAB is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: POLYCAB's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996n/aInder Jaisinghanihttps://www.polycab.com

Polycab India Limited manufactures and sells wires and cables under the POLYCAB brand in India and internationally. The company offers rubber cable, fire survival cables, and wires. It also provides ceiling, table, pedestal, wall, exhaust, farrata, and air circulated fans.

Polycab India Fundamentals Summary

How do Polycab India's earnings and revenue compare to its market cap?
POLYCAB fundamental statistics
Market Cap₹321.71b
Earnings (TTM)₹8.37b
Revenue (TTM)₹122.04b

39.0x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
POLYCAB income statement (TTM)
Revenue₹122.04b
Cost of Revenue₹94.91b
Gross Profit₹27.13b
Other Expenses₹18.76b
Earnings₹8.37b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)55.92
Gross Margin22.23%
Net Profit Margin6.85%
Debt/Equity Ratio1.5%

How did POLYCAB perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

25%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is POLYCAB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for POLYCAB?

Other financial metrics that can be useful for relative valuation.

POLYCAB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA24.8x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does POLYCAB's PE Ratio compare to its peers?

POLYCAB PE Ratio vs Peers
The above table shows the PE ratio for POLYCAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average41x
HAVELLS Havells India
60.6x18.1%₹709.9b
500093 CG Power and Industrial Solutions
32.5x4.4%₹285.0b
517569 KEI Industries
29.2x22.7%₹107.8b
532953 V-Guard Industries
41.6x15.3%₹95.3b
POLYCAB Polycab India
39x17.3%₹321.7b

Price-To-Earnings vs Peers: POLYCAB is good value based on its Price-To-Earnings Ratio (39x) compared to the peer average (41x).


Price to Earnings Ratio vs Industry

How does POLYCAB's PE Ratio compare vs other companies in the IN Electrical Industry?

Price-To-Earnings vs Industry: POLYCAB is expensive based on its Price-To-Earnings Ratio (39x) compared to the Indian Electrical industry average (19.4x)


Price to Earnings Ratio vs Fair Ratio

What is POLYCAB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

POLYCAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39x
Fair PE Ratio29.3x

Price-To-Earnings vs Fair Ratio: POLYCAB is expensive based on its Price-To-Earnings Ratio (39x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).


Share Price vs Fair Value

What is the Fair Price of POLYCAB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: POLYCAB (₹2179.85) is trading above our estimate of fair value (₹522.04)

Significantly Below Fair Value: POLYCAB is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: POLYCAB is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is Polycab India forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POLYCAB's forecast earnings growth (17.3% per year) is above the savings rate (6.8%).

Earnings vs Market: POLYCAB's earnings (17.3% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: POLYCAB's earnings are forecast to grow, but not significantly.

Revenue vs Market: POLYCAB's revenue (11.3% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: POLYCAB's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: POLYCAB's Return on Equity is forecast to be low in 3 years time (19.1%).


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Past Performance

How has Polycab India performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: POLYCAB has a high level of non-cash earnings.

Growing Profit Margin: POLYCAB's current net profit margins (6.9%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: POLYCAB's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: POLYCAB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: POLYCAB had negative earnings growth (-0.2%) over the past year, making it difficult to compare to the Electrical industry average (46.2%).


Return on Equity

High ROE: POLYCAB's Return on Equity (15.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Polycab India's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: POLYCAB's short term assets (₹51.4B) exceed its short term liabilities (₹17.4B).

Long Term Liabilities: POLYCAB's short term assets (₹51.4B) exceed its long term liabilities (₹1.0B).


Debt to Equity History and Analysis

Debt Level: POLYCAB has more cash than its total debt.

Reducing Debt: POLYCAB's debt to equity ratio has reduced from 42.8% to 1.5% over the past 5 years.

Debt Coverage: POLYCAB's debt is well covered by operating cash flow (615.4%).

Interest Coverage: POLYCAB earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Polycab India current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.64%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: POLYCAB's dividend (0.64%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: POLYCAB's dividend (0.64%) is low compared to the top 25% of dividend payers in the Indian market (1.83%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, POLYCAB has been paying a dividend for less than 10 years.

Growing Dividend: POLYCAB's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (25%), POLYCAB's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: POLYCAB is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Inder Jaisinghani (68 yo)

2.92yrs

Tenure

₹137,360,000

Compensation

Mr. Inder T. Jaisinghani has been Chairman of the Board at Polycab India Limited since December 20, 1997 and has been its Managing Director since August 28, 2019. He has been working with Polycab India Lim...


CEO Compensation Analysis

Compensation vs Market: Inder's total compensation ($USD1.74M) is above average for companies of similar size in the Indian market ($USD621.51K).

Compensation vs Earnings: Inder's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: POLYCAB's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: POLYCAB's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Polycab India Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Polycab India Limited
  • Ticker: POLYCAB
  • Exchange: NSEI
  • Founded: 1996
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: ₹321.706b
  • Shares outstanding: 149.61m
  • Website: https://www.polycab.com

Number of Employees


Location

  • Polycab India Limited
  • Polycab House
  • 771, Mogul Lane
  • Mumbai
  • Maharashtra
  • 400016
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.