XTRAS: Polycab eceived the prestigious ‘National Best Employer Brand’ award from the Employer Branding Institute of India in 2018.
SWOT Analysis
STRENGTH
• Rising Net Cash Flows and cash from operating activities.
• Company with Low Debt Company with zero Promoter Pledge.
• Growth in net profit with increasing profit margin.
WEAKNESS
• Insufficient use of Capital to generate Profit.
• ROCE is declining for the past 2 years.
• Promoter decreasing their shareholding.
OPPORTUNITIES
• Higher recovery from 52 week low.
• RSI indicating Price Strength.
• Negative to positive growth in sales and profit.
THREATS
• Company with high market cap and low public shareholding.
• Share with high PE (PE>40) Insider sold stocks.
• Insider sold stocks.
FUTURE PROSPECT
The company has Partner with the dealers and distributors to offer a wide gamut of world-class products, which cater to rising consumers’ aspirations while enabling them to achieve long term sustainable growth. The company plans to spend 300 crores in FY22 on CAPEX. Total 35% of the CAPEX will be directed towards its FMEG segment while the rest will be used for the wires & cables business, backward integration, and maintenance cost. Polycab launched its new project called “Project Leap” in which it aims to achieve revenue of 20,000 crores by FY26. The higher focus will be directed towards its B2C business, which will help drive up EBITDA margins and also increase its exports by adding new geographies and consolidating existing ones.
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