Thread by @ketanmba03

Polycab CMP 1029
👉 Leader in the Wire & Cable Industry
👉 Domestic Mkt share ~12%
👉 Revenue (W&C 89%, FMEG 7%, EPC & Othr 4%)
👉 In the early stage of transition from a commodity cable manufacturer to a branded consumer durable player

#Polycab
#StockMarket
#stockstowatch

𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻
👉 Consistent track record & has delivered a topline growth of >15% in last 4 yrs
👉 Earning growth has outpaced the topline due to richer product mix & an expansion in operating margins
👉 ROC has improved: 16% (FY16) 28% (FY19)

👉 Enjoys a cash-rich B/S & remains well positioned to navigate the cyclical downturn
👉 Strong distribution network (3300+ authorized dealers, ~30 warehouses) to cater >1lakh retail outlets
👉 High degree of backward integration helps to reduce RM price volatility

#polycab

👉 It has strong B2B focus. Its B2C presence (25% sales) continues to improve with the expansion in FMEG space
👉 50:50 JV with Trafigura to set up a 225k MT copper wire rod mfging facility in Gujarat (Reducing dependency on copper external sourcing)
👉 24 mfging facilities

👉 It had invested 1100 crs in last 5 yrs to enhance mfging capacity of W&C
👉 Despite being an asset heavy biz model with in-house mfging, it generates healthy return thru prudent capital allocation & working capital Mgt

#Stocktowatch
#polycab
#StockMarket
#Stock2020

𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗬𝗲𝗮𝗿 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲
👉 Continues to post healthy numbers Qtr after Qtr
👉 Sales & Op profit grew 24% & 26% in Q2
👉 42% Sales growth in FMEG due to expansion in Dist Network & new product launches
👉 Strong project execution drove revenues in the EPC

𝗙𝗠𝗘𝗚 𝗕𝗶𝘇
👉 At Nascent stage
👉 Grew @ 57% CAGR in 2016 to 2018
👉 Competitive intensity remains high as the segment is very crowded
👉 Ramping up its presence in this vertical by leveraging the existing Dist Network & increasing market visibility thru brand development

𝗥𝗶𝘀𝗸
👉 High degree of fluctuations in the RM prices. However, it claims that they are successful in passing the increased RM cost to customers
👉 It imports majority of its commodities, currency fluctuations also hits the margins

𝗢𝘂𝘁𝗹𝗼𝗼𝗸
👉 Slowdown will act as a catalyst for industry consolidation & aid the shift of Mkt share gains frm the unorganized to the organized segment
👉 W&C Mkt in India is growing 10%-12% & the current Mkt size is ~52k crores
👉 Expansion in retail a big trigger

👉 Continue to expand on the back of GOI focus on Power, Infrstructure & affordable Housing
👉 Electrical vehicles a big trigger as it manufactures critical components of the electricity value chain
👉 Consumer facing retail brand contribute ~40% of its topline in the nxt 4-5 yrs

👉 Polycab valuations seem reaonable at CMP
👉 Marquee brand and sticky clientele
👉 Expect steady earning growth coupled with economies of scale & change in biz mix could drive the value migration

@SagarRV1 @stockifi_Invest @AnyBodyCanFly @Rishikesh_ADX @koolvicky @nid_rockz