Polycab India ~ Connection Zindagi Ka – W&C, FMEG and EPC Player

1. Havells margins are taken down by Lloyds – their AC segment. Otherwise their margins are far superior to Polycab’s.

I will consider Polycab to be at same valuation when it’s FMEG business starts contributing atleast 30-35% with ~10% margins atleast.

2. Then, consider the brand values of both. Very few people in retail know about polycab branch, but Havells is well established in the minds of common people. Retail-focused branding is needed to sell FMEG part, Polycab has been in B2B mostly which was enough to sell cables.

I feel it will take 7-10 years of consistent marketing spends to reach Havells’ recall for Polycab.