Polycab India Ltd, facing pressure post-income tax searches, is set to reveal Q3 results on Jan 18. Analysts anticipate a YoY profit surge of up to 22% with a 12-20% sales increase. Despite a predicted sequential margin dip, it's expected to surpass the previous year's margin. Analysts attribute Polycab's market share growth to aggressive marketing, a diverse product range, and swift product availability. Some impact from December's IT raids on sales is anticipated.
Axis Securities forecasts robust growth in Polycab India's B2B segment and exports, projecting a 15.2% YoY profit increase to Rs 416 crore. Sales are expected to climb 16.5% to Rs 4,330 crore, with a 19.5% rise in Ebitda to Rs 602 and an Ebitda margin of 13.9%. Nirmal Bang sees a 22.6% YoY profit rise to Rs 438.50 crore and sales at Rs 4,458 crore, up 20% YoY. Phillip Capital expects an 18.1% profit and 17.9% revenue YoY jump, emphasizing growth in B2B, exports, and W&C markets in the south and east.
Jefferies has a target of Rs 7,000 on Polycab India shares, which have seen a 24% decline in the last month but were up 3.3% at Rs 4,338.25 on Tuesday. Prabhudas Lilladher forecasts a 12% YoY sales growth, with Wires & Cables up 11.1%. FMEG is expected to grow 4% YoY, affected by a seasonally weak quarter for fans. Margins are predicted to contract by 20 bps YoY, and PAT is forecasted to grow by 4.7% YoY.
