(Reuters) -Polycab India reported a stronger-than-expected fourth-quarter profit on Tuesday, buoyed by robust demand for its wires and cables from the real estate and power transmission sectors.
The company’s consolidated net profit surged 33% to 7.27 billion rupees ($86.14 million) in the three-month period ended March 31. Analysts, on average, had expected a profit of 6.12 billion rupees, according to data compiled by LSEG.
Polycab India’s revenue from operations rose 25% to 69.86 billion rupees, beating analysts’ estimates of 66.12 billion rupees.
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KEY CONTEXT
In the wires and cables segment, demand from real estate and power distribution sectors remains a lever of growth.
The Indian government has announced plans to invest 9.2 trillion rupees in power transmission infrastructure by fiscal 2032, driving demand for high-voltage power cables.
Amid rising competition, analysts say Polycab has managed to capture market share from both larger rivals and unorganized players.
Polycab also saw a boost from strong pre-summer demand for its electrical goods, including fans.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
Polycab India 35.12 23.87 2.87 17.42 21.07 Buy 24 0.83 0.55
R R Kabel 29.63 18.56 NULL 13.12 25.48 Strong 8 0.70 0.49
Buy
Havells India 53.65 35.49 3.99 14.16 21.27 Buy 25 0.87 0.64
V Guard Industries 38.07 24.25 NULL 13.72 25.18 Buy 15 0.82 0.39
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY TO MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 84.3975 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru; Editing by Sherry Jacob-Phillips)
