Polycab share price hits lifetime high. Axis Securities sees more upside
Stock market today: Despite a general sell-off in early morning deals on Dalal Street, Polycab's share price managed to hold its ground, drawing significant attention from bullish investors. This is particularly noteworthy when considering the broader market trend. Opening at ₹6,269 per share on NSE and reaching an intraday high of ₹6,468.90, Polycab's share price not only climbed to a new intraday high but also a new lifetime high.
Axis Securities, in light of this performance, projects a further increase to a target of 6,588 per share for the scrip. Polycab India Limited's Q4 results, announced last week, delivered a strong performance. The company surpassed market estimates on both revenue and PAT fronts, demonstrating its ability to outperform expectations.
However, it fell short of market expectations on the EBITDA margins, indicating areas for potential improvement. While Analyzing the Q4 results 2024 of Plycab India Ltd, Axis Securities said, "The company reported revenue growth of 29% YoY to ₹5,592 Cr, which stood 17% above our estimates. Wires & Cables segment grew by 19% YoY to ₹4,865 Cr, thanks to favourable industry demand and robust volume growth.
Higher execution in project business resulted in the EPC (Others) segment's growth of 275% YoY to ₹502 Cr. The FMEG segment also reported robust growth of 17% YoY to ₹358 Cr, backed by seasonal demand from the fan segment during the quarter. Gross margins were also above our estimates by 250bps at 30.5%, backed by strategic price revision and a favourable product mix.
Despite increased absolute operating profit, Polycab's operating margins declined by 50bps YoY at 13.6% vs. Axis Securities estimate of 14.8%. A sharp increase majorly led the decline in employee
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