Polycab India (POLYCAB)

FairStock Score: 64/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I start with business quality. Polycab earns a 25.55% ROE and 29.72% ROCE, carries almost no debt at 0.02 D/E, and scores 8/9 on Piotroski and 9.25 on Altman Z. Those figures point to a high-quality, financially resilient business with a likely moat, even if the exact source is not in this data. Growth is impressive: 40.61% sales growth, 34.95% profit growth, and a 20.47% five-year revenue CAGR. The latest quarter had ₹7,636 Cr sales and ₹630 Cr net profit, while free cash flow was ₹570 Cr. Promoter holding at 61.50% aligns interests. But Graham would stop at the price. At ₹9,240, the P/E is 48.78, P/B is 11.50, PEG is 2.52, and EV/EBITDA is 17.18. The Graham Number is only ₹1,603.70 and DCF intrinsic value is ₹2,024.13. That produces a margin of safety of -436.91%, meaning the stock trades far above conservative intrinsic worth. Dividend yield is just 0.51%, so little income cushion. The FairStock score of 64/100 calls it STEADY, not cheap. I admire the compounding and balance sheet, but as a value investor I require a discount, not a premium. Polycab may be a fine business, but at this valuation it is speculation on continued high growth. I would watch growth, cash conversion, and valuation before considering it. For an Indian retail investor, patience and a lower entry price are more Graham than chasing a quality name at 48 times earnings.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer