Polycab India (NSE: POLYCAB) – Balance sheet remains healthy
• Polycab is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (FMEG).
• Revenue grew 24% YoY at Rs.25bn in Q3 as cables sales was boosted by exports and optical fibre sales.
• FMEG business continued to break-even but margins declined sequentially.
• Cash flow from operating activities grew to Rs.5.4bn in 9MFY20.
• Polycab remains our top pick in India consumer electrical/durables. We revise our target price to Rs1246 (from Rs1150) as we increase our target P/E multiple to 23x.' -