Polycab India shares fall 4% from record high post Q2 earnings; check details

Shares of Polycab India Ltd saw profit-booking from their all-time high today after the cables and wire maker reported a 59% rise in September quarter profit at Rs 426 crore. Profit for the September 2022 quarter stood at Rs 268 crore. Revenue grew 26.5% to Rs 4218 crore in Q2 against Rs 3332 crore in the September 2022 quarter. After the Q2 earnings, Polycab India shares slipped 3.84% to Rs 5281.50 from the record high of Rs 5492.85 hit in the afternoon session today. The stock closed at Rs 5466.75 in the previous session. Total 0.21 lakh shares of the firm changed hands amounting to a turnover of Rs 11.58 crore on BSE today. Market cap of the firm fell Rs 79,443 crore on Wednesday.

Polycab India stock has a one-year beta of 0.8, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of the stock stands at 64.6, signaling the stock is neither overbought nor oversold. Polycab India shares are trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has climbed 92.89% in a year and risen 105.71% in 2023. In a period of three years, the shares of wire and cable maker have grown 558.51%, delivering multibagger returns for investors.

The Q2 earnings beat brokerages’ estimates.

Kotak Institutional Equities expected the firm to report a 27.66% rise in sales to Rs 4,254.1 crore in the September 2023 quarter against Rs 3332.4 crore in the corresponding quarter of the previous fiscal. Profit was seen rising 52.1% to Rs 411.3 crore in Q2 against Rs 270.4 in the September quarter of the last fiscal. EBITDA is likely to come at Rs 562.5 crore in the last quarter, up 31.5% from Rs 427.6 crore in Q2 of the previous fiscal.

"FMEG revenue growth, on the other hand, should remain subdued amid muted consumer demand, despite pockets of buoyancy around certain recent festivals such as Onam," the brokerage said.

According to Nuvama Institutional Equities, profit was expected to rise 54% to Rs 417.4 crore in Q2 compared to Rs 270.05 crore in Q2 of the previous fiscal. Revenue could climb 21% to Rs 4016.4 crore in Q2 against Rs 3332.4 crore in the September 2022 quarter, said Nuvama.

Polycab India Limited is the country's largest manufacturer of wires and cables. The company's business operations span across India through 23 manufacturing facilities, 15 plus offices and 25 plus warehouses.

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