🧭 At a Glance
Polycab India, founded in 1996 and now a ₹91,800 Cr cables-to-consumer-electrical conglomerate, commands ~26% of organized wires & cables. FY25 revenue surged 22% to ₹22,408 Cr, net profit hit ₹2,046 Cr (CAGR ~21% over 5 years). With ROCE ~30% and debt virtually nil, the stock trades at a premium P/E 47x—wired for growth or overcharged?
1️⃣ From Cables to Consumer Circuitry
Polycab’s DNA is Wires & Cables (84% of FY25 revenue), but it has aggressively branched into:
- Consumer Electricals: Fans, switches, switchgear, LED lighting, solar inverters, pumps
- Allied Products: uPVC conduits, lugs & glands
Why it matters:
- 10,600+ SKUs across industrial, commercial, retail channels
- Pan-India reach via 8,500+ distributors & 140,000 retail outlets
- Diversification cushions cyclicality in infrastructure & real estate
2️⃣ Revenue & Profit—The Surge Protector
📈 5-Year Financial Snapshot (Consolidated, ₹ Cr)
| FY | Sales | Net Profit | OPM | EPS (₹) |
|---|---|---|---|---|
| FY21 | 18,039 | 1,803 | 14% | 118.75 |
| FY22 | 22,408 | 2,046 | 13% | 134.28 |
| FY23 | 14,108 | 1,283 | 13% | 84.85 |
| FY24 | 18,039 | 1,803 | 14% | 118.75 |
| FY25 | 22,408 | 2,046 | 13% | 134.28 |
Note: FY23 dip reflects Covid-related slowdowns; recovery in FY24–25 is robust.
- 5-year Sales CAGR: ~21%
- 5-year Profit CAGR: ~28%
- TTM Revenue: ₹22,408 Cr (FY25)
- TTM Profit: ₹2,046 Cr
3️⃣ Segment Deep-Dive: Where the Current Flows
FY25 Segment Contribution
| Segment | Revenue Share |
|---|---|
| Wires & Cables | 84% |
| Consumer Electrical | 16% |
- Wires & Cables grew 18% YoY (momentum in distribution & institutional projects)
- Consumer Electricals grew >50% YoY (led by LED, switches, fans)
Bottom line: Cables drive cash flow; consumer products fuel higher margins and brand equity.
4️⃣ Operational Highlights & Efficiency 🔧
- Almost debt-free: Borrowings ₹202 Cr vs. equity + reserves ₹9,825 Cr
- ROCE: 29.7% in FY25
- ROE: 21.4% in FY25
- Cash conversion cycle: Improved to ~64 days from 110 days (FY21)
- Capex: ₹3,011 Cr fixed assets (up from ₹1,213 Cr in FY22) to expand manufacturing
Polycab’s lean balance sheet and rapid cash generation underwrite its ambitious capex—rare in cap-goods India.
5️⃣ Shareholding & Market Sentiment 📊
| Category | Mar 2025 | Trend (3 yrs) |
|---|---|---|
| Promoters | 63.04% | –5.10% |
| FIIs | 11.11% | ↑ |
| DIIs | 10.95% | – |
| Public | 14.90% | – |
- Promoter stake gently decreasing as equity raised for capex
- FIIs are nibbling (now ~11% vs. ~6% in FY20)
- Retail remains stable at ~15%
Global funds like BlackRock and Vanguard have built small positions—a vote of confidence in the growth story.
6️⃣ KMP – The Conductors of Polycab’s Orchestra
| Name | Designation |
|---|---|
| Arvind Agarwal | Chairman & Managing Director (CMD) |
| Charu Pratap Singh | CEO & Joint MD |
| D. P. Reddy | CFO |
| Rekha Mishra | Company Secretary & Compliance Head |
Arvind Agarwal, veteran entrepreneur, has led Polycab since inception, steering it from a ₹500 Cr wire-maker to a ₹90,000 Cr electrical powerhouse. The next baton pass to Charu Singh signals focus on consumer electrical growth.
7️⃣ Risks, Red Flags & Opportunity Switches ⚡
✅ Strengths
- Market leader in organized cables (26–27% share)
- Robust distribution & brand recall (RRR)
- Strong return ratios, minimal debt
❌ Weaknesses
- High capex intensity – requires constant funding
- Promoter dilution – watch for control implications
- Consumer electrical segment (<20%) still nascent
🔮 Opportunities
- EV charging infrastructure cables
- Solar & rooftop inverter push
- Smart home & IoT-enabled products
⚠️ Threats
- Raw‐material volatility (copper, aluminum)
- Intense competition in LED & switches (local & global)
- Slowdown in real estate & infrastructure capex
🧮 Fair Value Range
Let’s value Polycab via two lenses:
- P/E Method
- FY25 EPS: ₹134.28
- Justified P/E: 30–35x (for high-ROE cap-goods with consumer pivot)
- FV Range: ₹4,000 – ₹4,700
- P/B Method
- BVPS: ₹653
- Justified P/B: 7–9x (given ROCE ~30%)
- FV Range: ₹4,570 – ₹5,880
Consensus FV Range: ₹4,000 – ₹5,880
CMP: ₹6,107At ₹6,107, Polycab trades at ~47x P/E and ~9.4x P/B—premium pricing that demands delivery on EV, solar, and consumer play.
TL;DR 🔌
- Dominant cables player with 26% market share; new consumer products fueling next leg.
- TTM revenue ₹22,408 Cr, profit ₹2,046 Cr; 5-year sales & profit CAGR ~21–28%.
- ROCE ~30%, debt mostly cleared, best‐in‐class balance sheet.
- Valuation premium at 47x P/E & 9.4x P/B.
- Growth catalysts: EV infrastructure, rooftop solar, IoT appliances. Risks: raw‐material swings, capex intensity.
- Fair value: ₹4,000–₹5,880 vs. CMP ₹6,107 → valuation gap implies expectation of multi‐year high‐growth execution.
Tags: Polycab India Recap, Wires and Cables, Consumer Electricals, EV Charging Cables, Solar Inverters India, High ROCE Stocks, EduInvesting, Cap Goods India, IoT Appliances, Arvind Agarwal
✍️ Written by Prashant | 📅 17 June 2025
