Polycab India Ltd – Strong Q1 Results & Margin Expansion:-
Some important companies and some important updates related to them The name of the first company is polycap India LED.Disclaimer that all the news and updates related to all the companies that we will cover are only for educational purposes and for learning. So do not consider this as any kind of investment advice. You can also do your own research and analysis. About some important news and updates related to Polycab India.
Robust Growth in Revenue & Profit:-
Because as you all know, yesterday we got to see the numbers of polc India. Now if we look at the company’s revenue in the numbers that we saw in Q1, we saw a tremendous growth of 26%. Apart from that, we saw a tremendous jump of 50% in the company’s profit after tax. So the thing to note here is that the company has reported very good growth on both the parameters of revenue and profit. If we about the last three quarters, the best quarter of the company in terms of growth was seen in Q1 itself. Whether we look at the revenue of the company or the profit of the company. The point to note here is that both revenue and profit have done well but the company’s margins have also shown a very good performance. This time the company has reported an operating profit margin of 15%.
Business Segments: Wires, Cables & FMEG:-
Comparison must always be done on year on year basis. Now in Quarter 4, this company shows its best revenue and also its best profit. Because after quarter 4 we see the summer starting. That means the period of Q1 is the summer period. So its impact is visible only in quarter 4. Because of this, we often see higher Quarter 4 sales of this company. Even if you look at last year, we saw that the revenue in quarter one was lower as compared to quarter 4. But the thing to note here is that if you look at the last four quarters, the revenue shown by the company for quarter one is only less than quarter four. Rest of the quarter, this company is seen easily beating the revenue parameters which is a plus point. That means the demand is good.
FMEG Performance Highlights:-
Because earlier the FMEG segments used to give revenue to the company but did not give profit to the company. It used to cause loss to the company. Earlier the company was burning money just to expand in this market, was incurring losses, so that if it expands, then it can gain profits by increasing its margins. And right now we are seeing the same things. If we look at the data of Quarter One of last year, that is, if we look at the data of Quarter One of last year, the company had reported sales of ₹ 3794 million from its FMEG segment. Now if you convert this into crores then you will see the number ₹379 crores. And how much did you do this time? About ₹445 crores. And how much did you do in the last quarter ? 469 crores in Q4. So comparison should not be done on q & q basis.
And this growth is not only in the revenue of the company but also if we about the EBITDA of the company, mainly if we about EBITDA margins, then you will see changes in both. If you look at EBITDA, it was negative in quarter one last year. Negative 0.7% was positive 0.5% in the previous quarter. Keep this thing in mind. And how much is there in this quarter? 2.1% positive. This means that the company is now expanding its margins in this particular segment so that the company can gain good profits from this market as well. So ultimately we will get to see two important segments in the future of the company in which one segment we will also see is FMEG segments. So keep this thing in mind if you are an investor in Polycab India. But yes, you can look at all these things only for educational purposes.
PN Industries – First-Ever Stock Split:-
About the next company. So the name of the next company is PN Industries LED Recently the company has made its first ever split announcement. About stock split, we have seen it in the ratio of 1:10. Earlier the face value of the company was ₹ 10. After split face value will become ₹1. That means, in exchange of one, the company will give 10 equity shares to its investors as a split. So if you are a shareholder of Paw Industries then you can definitely take note of this news. If you are not a shareholder, you can ignore it. There is no other recommendation than this.
Tata Power Ltd – Strategic Battery Deal & Future Outlook:-
So the name of the next company is Tata Power LED. Now friends, we are getting to hear an important news related to Tata Power. If we look at the news, it is related to Tata Power, so we cannot speak directly, but we can definitely speak indirectly because this news is coming from Tata Power Renewable Energy, which is a subsidiary company of Tata Pow. Now you can understand this thing a little in detail. You will find the mansion here. You can see here that Tata Up Renewable Energy i.e. TPRL has signed the First Battery Energy Storage Purchase Agreement i.e. BESPA. Now who is it signed with? So this has been signed with NHPC. You must have heard the name. So obviously the company has signed a big deal with a big company. So ultimately if we look at it from business purpose then we can consider this news as positive. Now if you want to see the complete details of this project then you can read this down. If you are an investor, you can note this thing down if you want or understand it completely and well.
So in the last 5 years the company has grown its revenue and profit quite consistently. We can say that the growth rate of even 3 years is good. But if you look at the last one year, the company which used to grow its revenue and profit in double digits, we have seen its growth rate coming down to single digit. And earlier, growth was reported in double digits, hence, you used to see performance also in double digits. But in the last one year that number has come to single digit. Valuations were being seen as per the performance in double digits. So now the market is not able to digest single digit growth at that valuation. Due to this, you have seen the poor performance of Tata Power in the last one year. But if the numbers of the upcoming quarters look better for this company, then it is possible that the market may be seen digesting that valuation somewhere or the other. So the results of the coming quarters, in fact the financial year 2026, will be very important for Tata Power. And if we about the dates of its results then you can note 1st August. We will get to see the company’s Q1 results on this day.
Hindustan Aeronautics Ltd (HAL) – Defense News & Market Sentiment:-
The next company whose name is Hindustan Aeronuticsed i.e. HR, but before discussing it.If we look at Hindustan Aeronautics, it is in focus today. He is in focus because of his performance, but he can say that such performance is not only seen in HL. You have seen it in other defense companies also. If we about the last seven sessions, you have seen the Defense Index closing negative in six sessions and today too you are expected to see negative closing. About defense stocks, we have seen good profit booking today. This thing has been seen continuously for the last three days. In this you can see a decline of up to 4% in all these companies like BDL, Tata Patn, HL. Now why is this happening brother? Because earlier the defense company was continuously performing poorly. He made a comeback in March. March April May. The company’s performance in this was very impressive because we saw global tensions increasing during this period. And when global tensions increase, it is obvious that defense companies benefit the most from it. So because of this the defense companies were in focus. But right now all the global tensions are almost being eliminated. There is a tension between Russia and Ukraine which we have seen slipping away for a very long time. So we can say that it will not have any significant impact on the valuations. But right now, analysts, brokerage houses, all these people are spoiling the sentiments. About valuation of a sector, then ultimately any company in that sector , whether its valuation is low or high, we see its impact in it. And you have been seeing the same things facing the defense companies in the recent times. But after all this, some news related to HL is also coming. The biggest reason to be in focus is that the wings assembly has been handed over for LCA Tejas MK1A. From whose side? From L&T. Now understand this thing in a little detail. We are about LCA meaning Light Combat Aircraft whose name is Tejas MK1A. Ok? Now its wings assembly i.e. the wings fan. We cannot say fan, that means we can say that the wings, which make it fly, have been handed over by LNT to HL, so we can say that now HL can make LCS MK1A even faster, the equipment of which is seen reaching HL on time, which we can say that at present this news is being heard from LNT. So ultimately if we look at it from business purpose then we can call this news good. This will make the execution faster.