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

8.6%

POLYCAB

-0.6%

IN Electrical

1.4%

IN Market


1 Year Return

n/a

POLYCAB

-26.6%

IN Electrical

2.3%

IN Market

Return vs Industry: Insufficient data to determine how POLYCAB performed against the Indian Electrical industry.

Return vs Market: Insufficient data to determine how POLYCAB performed against the Indian Market.


Shareholder returns

POLYCABIndustryMarket
7 Day8.6%-0.6%1.4%
30 Day13.9%-4.6%2.7%
90 Day17.1%-10.0%-1.4%
1 Yearn/a-24.3%-26.6%4.3%2.3%
3 Yearn/a-7.1%-10.2%20.9%14.9%
5 Yearn/a-9.1%-13.9%41.2%28.2%

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 compared to its fair value and its price relative to the market?

18.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: POLYCAB (₹719.3) is trading above our estimate of fair value (₹98.43)

Significantly Undervalued: POLYCAB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: POLYCAB is poor value based on its PE Ratio (18.4x) compared to the Electrical industry average (13x).

PE vs Market: POLYCAB is poor value based on its PE Ratio (18.4x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

Low PEG Ratio: POLYCAB is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: POLYCAB is overvalued based on its PB Ratio (3.2x) compared to the IN Electrical industry average (0.7x).


Next Steps

Future Growth

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

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POLYCAB's forecast earnings growth (13.1% per year) is above the savings rate (7.6%).

Earnings vs Market: POLYCAB's earnings (13.1% per year) are forecast to grow slower than the Indian market (18.1% per year).

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

Revenue vs Market: POLYCAB's revenue (9.2% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: POLYCAB's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: POLYCAB's Return on Equity is forecast to be low in 3 years time (16.4%).


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

Earnings Trend: POLYCAB's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: POLYCAB's earnings growth over the past year (32.5%) exceeds its 5-year average (27.8% per year).

Earnings vs Industry: POLYCAB earnings growth over the past year (32.5%) exceeded the Electrical industry 16.8%.


Return on Equity

High ROE: POLYCAB's Return on Equity (16.7%) is considered low.


Return on Assets

ROA vs Industry: POLYCAB has a higher Return on Assets than the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: POLYCAB has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Polycab India's financial position?


Financial Position Analysis

Short Term Liabilities: POLYCAB's short term assets (₹41.7B) exceeds its short term liabilities (₹24.9B)

Long Term Liabilities: POLYCAB's short term assets (41.7B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: POLYCAB's debt to equity ratio (5.8%) is considered satisfactory

Reducing Debt: POLYCAB's debt to equity ratio has reduced from 31.6% to 5.8% over the past 5 years.

Debt Coverage: POLYCAB's debt is well covered by operating cash flow (713.4%).

Interest Coverage: POLYCAB's interest payments on its debt are well covered by EBIT (26.5x coverage).


Balance Sheet

Inventory Level: POLYCAB has a high level of physical assets or inventory.

Debt Coverage by Assets: POLYCAB's debt is covered by short term assets (assets are 21.569370x debt).


Next Steps

Dividend

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

0.42%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.5%industryaverage2.7%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: POLYCAB's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: POLYCAB's dividend (0.42%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).

Stable Dividend: Too early to tell whether POLYCAB's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if POLYCAB's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.7%), POLYCAB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Inder Jaisinghani (65yo)

5.2yrs

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

Compensation vs. Market: Insufficient data to establish whether Inder's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Insufficient data to compare Inder's compensation with company performance.


Management Age and Tenure

5.2yrs

Average Tenure

63.5yo

Average Age

Experienced Management: POLYCAB's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

65yo

Average Age

Experienced Board: POLYCAB's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

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


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: 5.2yrs
    • Compensation: ₹86.19m
  • Ajay Jaisinghani (67yo)

    Whole-Time Director

    • Tenure: 13.5yrs
    • Compensation: ₹28.25m
  • Ramesh Jaisinghani (62yo)

    Whole-Time Director

    • Tenure: 23.8yrs
    • 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: 1.1yrs
    • Compensation: ₹2.26m
  • Pradeep Poddar (65yo)

    Non-Executive & Independent Director

    • Tenure: 1.1yrs
    • Compensation: ₹2.18m
  • Hiroo Mirchandani (58yo)

    Non-Executive & Independent Director

    • Tenure: 1.1yrs
    • Compensation: ₹1.76m
  • Shyam Bajaj (65yo)

    CFO & Whole-Time Director

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

    Non-Executive & Independent Director

    • Tenure: 1.1yrs
    • Compensation: ₹2.26m
  • Inder Jaisinghani (65yo)

    Chairman & MD

    • Tenure: 5.2yrs
    • Compensation: ₹86.19m
  • Ajay Jaisinghani (67yo)

    Whole-Time Director

    • Tenure: 13.5yrs
    • Compensation: ₹28.25m
  • Ramesh Jaisinghani (62yo)

    Whole-Time Director

    • Tenure: 23.8yrs
    • 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: ₹106.802b
  • 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 Analysis2019/10/17 12:59
End of Day Share Price2019/10/17 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.