Polycab India Ltd: Angel Broking

Quote and Report on Polycab India limited by Mr. Amarjeet Maurya (AVP - Mid Caps, Angel Broking):"Polycab India Ltd. (PIL) manufactures and sells a diverse range of wires & cables. The company's key products in the wires & cables segment include power cables, control cables, instrumentation cables, solar cables, building wires and flexible cables. In the year 2009, the company diversified into engineering, procurement and construction (EPC) business. Further, it also ventured into fast moving electrical goods (FMEG) segment in 2014 and started offering products such as electric fans, LED lighting & luminaires, switches & switchgears, solar products & conduits and accessories. The company has 24 manufacturing facilities, including two joint ventures.

Outlook & Valuation: In terms of valuations, the pre-issue P/E works out to 16.7x its FY2019 annualized earnings (at the upper end of the issue price band), which is slightly lower compared to its peers like Finolex Cables (20.7x) & Kei Industries (20.x). Further, Polycab's market leadership position in wires & cables segment, diversified product portfolio, strong distribution network & brand recall and proven financial track record are the key positives. Given the above favorable factors, we recommend Subscribe to issue."

Source : Equity Bulls

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