XTRAS: Polycab IPO in 2019 was huge success. It debuts at 21% premium over issue price of 538. It was subscribed over 52 times.
Polycab India Limited is India's leading manufacturers of cables and wires and allied products such as uPVC conduits and lugs and glands. They have a range of cables and wires for practically every application. More recently Polycab has also launched a wide range of consumer electrical products like Fans, Switches, Switchgear, LED lights and Luminaries, Solar Inverters, and Pumps. Polycab is the No 1 manufacturer of wires and cables in India with a market share of over 18%.
Financial Highlights
• Revenues and net profit have been increasing year on year despite being hit by the pandemic in the financial years 2020 & 2021.
• EPS has grown over the year as the company has more profits to distribute to shareholders.
• The dividend payout ratio over the years has increased means the company is reinvesting less money back into business while paying out relatively more of its earnings in the form of dividends.
• Total assets have been grown significantly over the year’s shows an increase in sales over the year, while lowering expanses.
• Contingent liabilities are declining significantly over the year as all contractual obligations are closely monitored and fulfilled with due diligence.
Cash Flow Analysis
• The Cash flow from operations during the year remains positive which is a good sign. Cash from operation in the year 2021 is increased to Rs1238 almost 400% change indicating that the core business activities of the company are thriving.
• The Cash flow from investing activities is negative throughout the year as the company is investing in long-term fixed assets and acquiring different companies like Silvan Innovation Labs Pvt Ltd.
• The Cash flow from the Financing activities of polycab is showing that the company is paying off its debts.
• Overall, the Net Cash flow in the year 2021 has improved significantly.
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