Polycab India Ltd was one of the few stocks that managed to make fresh life-highs on Wednesday at a time when Sensex closed down by more than 300 points. The stock made a fresh high at Rs 1,762 per share on BSE. Currently, the stock is up by 129 per cent in a one-year period.
Polycab is one of the favourites of long-term investors due to its strong financials and consistent growth over the last few years. It has posted growth in sales & profits along with a reduction in debt over the years. In the latest quarter, the company’s revenue grew by 43 per cent YoY, while gross margins contracted by 519 bps on higher commodity prices. Its EBITDA grew by 40.1 per cent YoY with an EBITDA margin of 13.9 per cent, which contracted by 25 bps YoY.
Polycab recorded impressive growth in its key segments such as wires & cables, which grew by 34.9 per cent YoY, owing to improvement in the consumer sentiment, healthy pick-up in infrastructure & industrial project activities along with higher sales realisation. The lighting product growth almost doubled while the switches & gear segment grew by 2.5x.
The important fast-moving electrical goods’ (FMEG) segment grew by 89.2 per cent. The management expects breakout growth in the B2C segment and is aiming for leadership position in the B2B segment.
Polycab India is the country’s largest manufacturer and seller of an extensive range of cables & wires, and a fast-growing player in the FMEG industry, along with an established export presence.