Polycab India's stock hits new high on strong demand outlook and financial performance

From Business Standard: 2024-06-24 03:35:41

Polycab India’s share price hits new high at Rs 7,260 amid strong demand outlook, marking a recovery of 90% from a low in January 2024. The company, a major player in wires & cables, posted a Q4FY24 revenue of Rs 5,592 crore, with a record profit of Rs 553.5 crore.

With a 30% surge in the past two months, Polycab remains optimistic about the growth of the W&C industry in the near future. Government emphasis on infrastructure development and renewable energy projects are key drivers. The company is ramping up capex, targeting tier 3 to 5 cities.

Analysts project a solid revenue and profit growth for Polycab, expecting CAGR of 17.9% and 16.6% respectively over FY24-26. Strong demand environment, government initiatives, and expansion in international markets are poised to boost growth. Focus on FMEG and EPC segments are key drivers for future growth.

Polycab aims for sustained growth in the FMEG industry by enhancing performance through distinct product-focused units. While temporary stagnation may occur in FY25, proactive measures are expected to yield long-term benefits. The company’s strong position in the C&W industry and focus on capex bode well for future success.



Read more at Business Standard: Polycab India hits new high; stock zooms 90% from January low | News on Markets