1,170% gains in 5 years: Polycab hits ₹1 trillion m-cap
What's the story
Polycab India, a prominent manufacturer of wires and cables, has witnessed an impressive surge of 1172% in its stock price over the past five years.
The company's market capitalization has now reached the ₹1 trillion mark, placing it among a select group of highly valued companies.
This significant milestone was achieved when Polycab's stock price hit a record high of ₹6,843.80 in today's session.
Recovery phase
Polycab India's stock recovers 80% from January low
Polycab India's stock has rebounded significantly, recovering by 80% from its low point of ₹3,812.35 on January 11, 2024.
This recovery was further bolstered by an 18% surge in the company's stock over eight trading days since May 10.
The surge followed Polycab's announcement of its highest ever yearly and quarterly revenue and profitability in March 2024.
Financial performance
Polycab India reported consolidated turnover of ₹18,039 crore in FY24
Polycab India, the largest manufacturer of wires and cables in the country, reported a consolidated turnover of ₹18,039 crore in FY24.
In Q4FY24 alone, the company's revenue grew by 29% year-on-year to ₹5,592 crore due to strong volume growth.
The company's profitability for Q4FY24 crossed the threshold of ₹500 crore for the first time ever as it posted a profit after tax of ₹553.5 crore, marking a growth of 29% YoY.
Future projections
Analysts predict continued growth for Polycab India
Analysts at Prabhudas Lilladher project revenue, EBITDA, and PAT CAGR of 17.9%, 17.4%, and 16.6%, respectively over FY24-26 due to strong domestic demand supported by government measures and revival in private capex.
Motilal Oswal Financial Services has also reiterated its 'Buy' rating on Polycab India with a target price of ₹7,850 based on a projected EPS for FY26E.
These projections reflect the market's confidence in Polycab's continued growth trajectory.