Stock Market

Polycab takes a shot at becoming the dark horse in a market dominated by Havells, Crompton

Image credit: Polycab via Facebook


Polycab India managed to beat analysts’ expectations in the September quarter. While analysts felt that the stock had peaked, with some brokerages recommending a ‘sell’, it kept rising. But low operating margins and demand headwinds call for caution. Is the rise due to the present liquidity-driven rally in the market, or should investors sell the stock as valuations are high?

In October 2020, brokerage firms got worked up about the valuations of fast-moving electronics goods (FMEG) companies. The segment was hit by the pandemic due to tepid real-estate sales. Shares of even the larger players were trading at price-to-earnings (P/E) multiples of 50x-100x. In a market dominated by large consumer brands like Crompton Greaves and Havells India, questions were raised about the recovery of smaller players. Polycab India, a

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