ADVERTISEMENT

Polycab India - H1 FY23 Likely To Witness Realisation Decline, Demand Deferment: Centrum Broking

Polycab India - H1 FY23 Likely To Witness Realisation Decline, Demand Deferment: Centrum Broking

<div class="paragraphs"><p>Cables and wires manufactured by Polycab India Ltd. (Source: Company website)</p></div>
Cables and wires manufactured by Polycab India Ltd. (Source: Company website)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

The prices of copper and aluminium have declined sharply in June 2022 and are currently 16%/24% lower from the average price of Q4 FY22. The cable and wire industry has to pass on this price decline fairly quickly, thereby impacting its realisation along with volumes as the trade channel starts de-stocking.

We have analysed the impact of change in copper and aluminium prices over the past 20 years on revenue growth and operating margin of the five large cable companies. We believe H1 FY23 is likely to be a challenging period for cable industry due to a double whammy of demand slow down and sharp reduction in realisation.

We cut FY23/24 revenue estimates of Polycab India Ltd. by 8.3%/11% leading to cut in earnings estimates by 4.2%/7.5%.

Click on the attachment to read the full report:

Centrum - Polycab India - Company Update.pdf

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.