BackPolycab share price hits 52-week high, gains 4% on robust Q1 results
Polycab share price continues to rise, hitting 52-week highs for the second consecutive day after an 82% increase in Q1 profit.
PremiumPolycab share price gained for the second straight day in a row hitting 52-week highs on both the days. In the early session on July 19, the Polycab share price gained 4.77% to hit a 52-week high of ₹4,324.85 a day after after the company announced an 82% jump in first-quarter profit, helped by higher sales.
Polycab share price had hit a high on July 18 as well on the back of Q1 earnings.
The cables and wires manufacturer Polycab India reported a strong growth of 82% in Q1FY24 net profit at ₹402.8 crore as compared to ₹223 crore in the corresponding period of last year.
The company’s revenue increased 42.1% to ₹3,889.3 crore from ₹2,736.6 crore, YoY.
Wires & Cables revenues grew by 46.9% YoY to ₹3,530 crore on strong volume growth in both domestic and international business.
International business which grew by 88% YoY contributed 8.9% to its total sales. The company expanded its global footprint to 72 countries. FMEG revenues up by 2.1% YoY to ₹310 crore.
On the operational front, earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 76.3% to ₹548.5 crore from ₹311 crore, while EBITDA margin improved by 270 basis points to 14.1% from 11.4%, YoY.
Polycab India share price has rallied 67% this year so far, while the stock has jumped over 90% in the last one year.
ICICI Securities said the key drivers behind Polycab's robust results were strong institutional demand due to revival in infrastructure, real estate and capex cycle, 88% growth in exports and distribution rejig.
“We model Polycab to maintain strong earnings CAGR of 24.3% over FY23-25E led by healthy demand from B2B sectors and correction in commodity prices. We also model FMEG segment to revive in H2FY24. Improving maturity of value-for-money brand ‘Etira’ and premium brand ‘Hohm’ are likely to be DCF accretive events," ICICI Securities said.
The brokerage firm raised FY24-FY25 earnings estimates by 9% to factor in strong Q1FY24 and commodity price correction. It maintained Hold rating on the stock and revised the target price to ₹4,100 per share from ₹3,400 earlier.
At 10:30 am, the shares of Polycab India were trading 3.79% higher at ₹4,284.30 apiece on the BSE.
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