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Cables

Cables next rallyIndustry is experiencing robust demand environment and Polycab is well-positioned to capitalize on this favourable market dynamics. India Ratings has improved the outlook on Polycab's credit rating to “positive” from the earlier “on watch with negative implication” Polycab's in the process of calibrating new mid-term guidance and will be releasing the new guidance during the course of this financial year RDSS Govt scheme will give good orderbook Polycab working on 4 areas Improving our reach Product development Brand positioning Influencer management Every quarter, Polycab adding new geography to supply its inventory Working on 1000 to 1100cr capex to cater increased demand in next few years. 280Cr capex already done. Capacity utilization in Q1 70-75% In power transmission distribution sector, component of cable supply is high than other sectors. Cables 75% and wires 25% contribution. Wire contribution would increase in upcoming quarters between 4 to 8 as real estate projects are in progress. Framed index with Kei, Polycab, RRkabel, Fincables. Fib target is double of current. Target 29987.45 of this index.
NSE:KEILong
by naraykln
Polycab - Wires & Cables demand in multiple sectorsConcall Polycab...3K Cr Capex over 3Y. A bit towards backward integration(improves efficiency) & FMEG segment Seen 30-40% volume growth in Q4 & last year. Industry at 22% growth No material impact in pricing pressure despite rise in commodities(copper & Aluminium) pricing. Mgmt seems to have witnessed this G8 demand in Infrastructure, Power, Renewable energy, EV, Railways sectors...and so capacity expansion. Seems to be an article published mentioning power deficit in India in June 12-13% consistent margins achievable over long time Distributors playing key role in sales.. Cuz only 10% customers directly buying from company. 89-90% sales is thro' distributors... RDSS govt project open orders close to Rs. 50 Bn FY 23 closed with 18K Cr revenue. Previously set target was 20K Cr top line by FY 26. But this will be revised(increased) by this FY
NSE:POLYCABLong
by naraykln
Polycab - Valuations at its peakPolycab stellar performer among wires & cables. Polycab's guidance value is to achieve 20K Cr revenue(top-line) sales by 2026. And it appears they'll achieve ahead of timeline. Company expects volume growth to continue in the second half as well. As of 2023, 14K Cr sales. Jefferies adjusted its price target for Polycab India from INR4,835 to INR6,220 and maintained its "buy" rating Been riding this since 2021. Earnings are growing good every quarter. Revenue(8 to 16K Cr), Net profit(766 to 1622), EPS(50 to 100) All these roughly doubled in 3Y since 2020. Whereas Price grown 7 times. 740 to around 5K Further in terms of valuations PE (Price to Earnings ratio) Last 5Y avg is 31.426 Current 46.40 PB (Price to Book ratio) Last 5Y avg is 6.332 Current 11.45 PS (Price to Sales ratio) Last 5Y avg is 2.8. Current 4.7 I'll patiently wait for price near 50% Fib level which is 3350. 2600 is fair value. Pivot R2 is at 3533. Historical fall is 35% from ATH. So 35% from ATH is 3570. Previous resistance breakout is at 3618 which could act as support. So +/- 5 to 8% above 50% fib level. I'll start watching from 3620 and accumulate gradually over fall & reversal. Disclaimer: Entered and averaged up Since Mid 2021 till Mar 2023. Holding.
NSE:POLYCABShort
by naraykln