Polycab India shares jump ahead of Q4 results today; what analysts say

Shares of Polycab India Ltd climbed 2 per cent in Friday's trade ahead of its March quarter results. Analysts are largely expecting Polycab India to clock 18-21 per cent YoY rise in Q4 profit on healthy sales. 

Nirmal Bang expects the company to report 18.2 per cent year-on-year (YoY) rise in net profit Rs 501 crore on 9 per cent YoY rise in sales at Rs 4,715 crore. It sees Ebitda rising 17.6 per cent YoY to Rs 716.80 crore and Ebitda margin at 15.2 per cent.

This would be against a margin of 13.1 per cent in December and 14.1 per cent in the March quarter last year. Polycab India continues to garner market share due to its aggressive marketing, a wide product portfolio and quick availability of products, the domestic brokerage said.

The stock rose 1.81 per cent to hit a high of Rs 5,909 on BSE.

YES Securities said Polycab India should deliver strong double digit growth as slowdown in cable ordering from government on back of impending elections is compensated by higher capex from private companies and also there is an element  of pre-buying in housing wires as copper prices have started to inch up. 

"FMEG should see moderate growth  on back of slower demand for FMEG products and price erosion in lighting. Ebitda margins is expected to  remain flat on YoY basis.

This brokerage expects Polycab India to log 21.4 per ecnt YoY rise in profit at Rs 520 crore on 18.9 per cent YoY rise in sales at Rs 5,138.70 crore.