Polycab India Ltd.
ISIN: INE455K01017 • Market Cap: ₹1.37 Lakh Cr
The 5-Pillar Quality Audit for Polycab India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (13.7%), Return on Capital Employed (30.9%), and equity compounding (22.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.01 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (20.0%) and 3Y PAT CAGR (17.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 47.87 vs PEG of 3.49 and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 61.5%, backed by 26.6% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 30.9%)
Polycab India Ltd. generates exceptional return on capital employed of 30.9%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 22.3%)
Shareholder equity compounds at a healthy 22.3%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.01)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 20.0%)
Revenue has expanded at 20.0% CAGR over 3 years, signaling industry market-share gains.
Deep Institutional Sponsorship (26.6%)
Mutual funds, domestic DIIs, and foreign FIIs hold 26.6%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking POLYCAB against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 78/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare POLYCAB directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Polycab India Ltd. (POLYCAB)Current | 78/100 | ₹1.37 Lakh Cr | 47.87 | 30.9% | 0.01 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Polycab India Ltd.
Q:What is the 5-Pillar Fundamental Score for Polycab India Ltd. (POLYCAB)?
Polycab India Ltd. has a RupeeTools Fundamental Score of 78/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (86/100), Financial Health (90/100), Growth (78/100), Valuation (48/100), and Ownership Quality (78/100).
Q:Is POLYCAB fundamentally strong for long-term investment?
Yes, POLYCAB exhibits solid fundamental strength with a 78/100 score, driven by a return on equity of 22.3% and a debt-to-equity ratio of 0.01.
Q:Does POLYCAB pass the Coffee Can Investing filter?
Yes! POLYCAB satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does POLYCAB compare against other Capital Goods peers?
Within India's Capital Goods sector, POLYCAB trades at a P/E of 47.87 and generates an ROCE of 30.9%. Compare its 5-Pillar score of 78/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.