Continue to be bullish on Polycab ?? Perfect Proxy to India Story ?

1 - Business:
Polycab is primarily in the business of manufacturing and selling Wires and Cables (W&C) and fast-moving electronic goods (FMEG).

Major chunk of Polycab’s revenue comes from the W&C segment (87%)

FMEG segment trump card with smaller pie but with high growth ~25%. Can play a crucial role in 20,000 Cr by 2026

Polycab’s business is a proxy to real estate, infrastructure (ex: electrification, capex in different industries, power and railway etc) and the renewable energy industry

4 takeaways from Q1 FY 23 concall
4.1 Copper and Aluminum prices have started falling and till they don’t stabilize it will have a negative impact
4.2 By 2026 it aims for the margins in FMEG to go up to 12%.

4.3 The margin for the W&C segment this quarter was 12%. Outlook (11-13%)

4.4 On volumes the management expects H2 2023 to be better than the first half. (Negative)

Discl: Consult financial advisor. No a reco