Polycab India, the market leader in wires and cables, has seen its stock price rise by 200% in the last three years. The surge occurs despite the fact that the stock's price to equity ratio (PE ratio) appears to be high at 56.62, which is comparable to the sector's PE of 56.08. Similarly, the price-to-book ratio is greater than it has been in the past, at 12.32. However, the stock's profits per share (EPS) increased by 40.13% and 39.43% in the fiscal years ending March 2024 and March 2023. A yearly increase in EPS indicates that the company's net income and, as a result, profit have increased throughout time.
The debt-to-equity ratio is 0.01, indicating that the corporation is debt-free. Meanwhile, in the current trading session, Polycab India stock was trading flat at Rs 6717 on Wednesday, compared to the previous close of Rs 6766.30.
The multibagger stock is up 28.52% in a year and 40% in six months.
On the BSE, 5383 shares of the business changed hands, resulting in a transaction of Rs 3.60 crore. The firm's market capitalization was at Rs 1.01 lakh crore in the current session.
Polycab India has a one-year beta of 0.9, showing relatively low volatility during the time. Polycab India shares are trading higher than the 20-day, 50-day, 100-day, and 200-day moving averages, but lower than the 5-day and 10-day moving averages.
The fast moving electric goods (FMEG) stock is neither overbought nor oversold on the charts, as shown by its RSI of 53.8. SBI Securities has set a target price of Rs 7,979.6 for Polycab shares.
Polycab appeals to the brokerage because of its diverse product offering and solid infrastructure. The corporation has 28 production sites and an extensive distribution network throughout India. Furthermore, Polycab's revenue projection of Rs 20,000 crore by FY26 may be revised upward, considering its exceptional performance of more than Rs 18,000 crore in FY24. According to SBI Securities, the business forecasts growth despite a mixed first quarter of FY25, with plans for major investment to expand capacity and enhance sales.
Motilal Oswal has commenced coverage of Polycab shares.
"We prefer Polycab because of its market leadership in cables and wires, excellent profits growth, and attractive return ratios. We anticipate Polycab's RoE/RoCE to be 20%/21% in FY26, compared to 19% in FY23. RoIC would be 27% in FY26, compared to 26% in FY23. We predict the company's premium values to remain unchanged. Motilal Oswal's price objective for the company is Rs 7,500, based on a 50x FY26E EPS valuation.
Polycab India reported a slight decrease in consolidated net profit to Rs 401.62 crore in the June 2024 quarter, compared to Rs 403.16 crore in the same period previous year. In the first quarter, consolidated operating revenue was Rs 4,698 crore, up from Rs 3,889.38 crore the previous year.
Polycab India Limited is the country's largest wire and cable maker. The company's business operations are spread across India, with 23 production sites, 15+ offices, and 25+ warehouses.
