Polycab Share Price Jumps After Jefferies Hikes Target – Q4 Profit Up 33%

Polycab share rise over 1% after Jefferies raises target price to ₹7,050. Strong Q4 results show 33% profit growth and highest dividend in 6 years. Should you invest?

Polycab Share Price Improved After Jefferies Modification Price—Should You Invest Too?

Polycab Share Price Latest Update: Polycab India shares witnessed a remarkable surge of over one percent, recently surpassing their previous day closing, soon after thereafter Jefferies renewed its coverage with a price upgrade post the company’s strong Q4 results.

Polycab Q4 Results Make Investors More Optimistic.

Polycab posted a net profit of ₹727 Cr in the March 2024 quarter which is approximately 33% growth from ₹546 Cr in the same quarter last year, and this quite understandably turned many heads.

Around 9:30AM, Polycab’s share was trading at circa ₹5991, which is ₹88.50 or 1.43% increase on the NSE and up from 5989.

Strong Revenue Growth and Profit Growth

Polycab reported a revenue growth of 25% YoY to ₹6985.7 Crores and operating profit (EBITDA) on Polycab also registered a growth of 34.7% jumping to ₹1,025.7 Crore.The operating margin for the firm improved to 14.7% which is 110 basis points increase yoy.

Largest Dividend In Six Years

Polycab plans to issue a dividend of ₹35 per share towards the end of the fiscal period 2024-25. This marks the largest dividend issued by the company in the last six years, indicating the company’s strong focus on increasing shareholder value.

Jefferies also commend Polycab’s outstanding performance where they achieved the highest profit in the company’s history during the Q4. No matter the mark margin pressures, earnings stayed strong due to elevated sales.

Also, the firm noted that Polycab now holds a significantly larger share of the market than they did before, 26-27% compared to 18% back in FY19. In Polycab’s case, Jefferies stated they expect to see a 20% growth in annual sales and a 26% growth in profit for the company.

With these strong fundamentals, Jefferies has changed its target price from ₹6,485 to ₹7,050 per share while keeping a “Bought” rating.

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Final Thoughts: Is Polycab A Good Investment?

Considering the gap between renewed quarterly results alongside increasing market share and profits with optimistic projection from industry experts, Polycab appears to be a strong candidate for investment. As Polycab is a stock, like any other, it’s crucial for investors opting for investment makes sure to do thorough research or take advice from a financial advisor.