NSEI:POLYCAB

Stock Analysis Report

Executive Summary

Polycab India Limited manufactures and sells wires and cables, and fast moving electrical goods in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Polycab India's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

POLYCAB

3.2%

IN Electrical

-4.2%

IN Market


1 Year Return

n/a

POLYCAB

-23.8%

IN Electrical

-7.8%

IN Market

No trading data on POLYCAB.

No trading data on POLYCAB.


Share holder returns

POLYCABIndustryMarket
7 Day1.5%3.2%-4.2%
30 Day19.9%9.2%2.7%
90 Day8.4%-10.8%-5.5%
1 Yearn/a-21.5%-23.8%-6.0%-7.8%
3 Yearn/a0.3%-3.1%18.5%12.6%
5 Yearn/a3.7%-1.6%38.6%25.6%

Price Volatility Vs. Market

How volatile is Polycab India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Polycab India undervalued based on future cash flows and its price relative to the stock market?

16.45x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Polycab India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Polycab India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Polycab India is overvalued based on earnings compared to the IN Electrical industry average.

Polycab India is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Polycab India is poor value based on expected growth next year.


Price Based on Value of Assets

Polycab India is overvalued based on assets compared to the IN Electrical industry average.


Next Steps

Future Growth

How is Polycab India expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Polycab India's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

Polycab India's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).

Polycab India's revenue growth is positive but not above the India market average.

Polycab India's earnings growth is positive but not above the India market average.

Polycab India's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Polycab India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Polycab India performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Polycab India has delivered over 20% year on year earnings growth in the past 5 years.

Polycab India's 1-year earnings growth exceeds its 5-year average (32.7% vs 27.8%)

Polycab India's earnings growth has exceeded the IN Electrical industry average in the past year (32.7% vs 17.9%).


Return on Equity

Polycab India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Polycab India used its assets more efficiently than the IN Electrical industry average last year based on Return on Assets.


Return on Capital Employed

Polycab India has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Polycab India's financial position?


Financial Position Analysis

Polycab India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Polycab India's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Polycab India's level of debt (9.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (31.6% vs 9.5% today).

Debt is well covered by operating cash flow (451.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 41.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 14.4x debt.


Next Steps

Dividend

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

0.60%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Polycab India's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.57%).

Polycab India's dividend is below the markets top 25% of dividend payers in India (2.34%).

It is too early to tell whether Polycab India has stable dividend payments.

Polycab India only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (13x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Polycab India's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average management tenure


CEO

Inder Jaisinghani (65yo)

5.1yrs

Tenure

₹86,190,000

Compensation

Mr. Inder T. Jaisinghani is the Chairman and Managing Director of Polycab India Limited. He has been working with Polycab India Limited since its inception. He has completed his education up to secondary s ...


CEO Compensation Analysis

Inder's remuneration is higher than average for companies of similar size in India.

Insufficient data for Inder to compare compensation growth.


Management Age and Tenure

5.1yrs

Average Tenure

63.5yo

Average Age

The average tenure for the Polycab India management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.9yrs

Average Tenure

65yo

Average Age

The average tenure for the Polycab India board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Shashank Pore (49yo)

    Chief Marketing Officer

    • Tenure: 0yrs
  • Shyam Bajaj (65yo)

    CFO & Whole-Time Director

    • Tenure: 2.8yrs
    • Compensation: ₹25.76m
  • Vivek Khanna (56yo)

    President of Accounts & Information Technology

    • Tenure: 0yrs
  • Inder Jaisinghani (65yo)

    Chairman & MD

    • Tenure: 5.1yrs
    • Compensation: ₹86.19m
  • Ajay Jaisinghani (67yo)

    Whole-Time Director

    • Tenure: 13.4yrs
    • Compensation: ₹28.25m
  • Ramesh Jaisinghani (62yo)

    Whole-Time Director

    • Tenure: 23.7yrs
    • Compensation: ₹28.25m
  • Anil Kumar

    Head of Institutional Sales and Executive Vice President

    • Tenure: 0yrs
  • Suresh Kumar

    President of Strategy & Human Resources

    • Tenure: 0yrs
  • Sai Narayana

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
  • Radhakrishna Adyanthaya

    President of Fans and Chief Operating Officer of Fans

    • Tenure: 0yrs

Board Members

  • Radhey Sharma (68yo)

    Non-Executive & Independent Director

    • Tenure: 1yrs
    • Compensation: ₹2.26m
  • Pradeep Poddar (65yo)

    Non-Executive & Independent Director

    • Tenure: 1yrs
    • Compensation: ₹2.18m
  • Hiroo Mirchandani (58yo)

    Non-Executive & Independent Director

    • Tenure: 1yrs
    • Compensation: ₹1.76m
  • Shyam Bajaj (65yo)

    CFO & Whole-Time Director

    • Tenure: 2.8yrs
    • Compensation: ₹25.76m
  • Tilokchand Ostwal (65yo)

    Non-Executive & Independent Director

    • Tenure: 1yrs
    • Compensation: ₹2.26m
  • Inder Jaisinghani (65yo)

    Chairman & MD

    • Tenure: 5.1yrs
    • Compensation: ₹86.19m
  • Ajay Jaisinghani (67yo)

    Whole-Time Director

    • Tenure: 13.4yrs
    • Compensation: ₹28.25m
  • Ramesh Jaisinghani (62yo)

    Whole-Time Director

    • Tenure: 23.7yrs
    • Compensation: ₹28.25m

Company Information

Polycab India Limited's company bio, 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
  • Market Cap: ₹95.468b
  • Shares outstanding: 148.65m
  • Website: https://polycab.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
542652BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2019
POLYCABNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2019

Biography

Polycab India Limited manufactures and sells wires and cables, and fast moving electrical goods in India and internationally. The company offers power, control, instrumentation, solar, flexible, flexible/s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 12:58
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.