Rs 782 to Rs 3,475 in three years: Can multibagger FMEG stock hit Rs 4,000 mark?

Shares of multibagger Polycab India Ltd are in focus today after Nuvama Institutional Research assigned a buy call to the fast-moving electrical goods (FMEG) stock with an outperform rating. The brokerage expects the Polycab India stock to hit Rs 4,000 mark in a year, an upside of 15% against the previous close of Rs 3468.95 on BSE. In the previous session, Polycab India stock ended flat at Rs 3475 rising 0.17% on BSE.

The stock has climbed 54.11% in a year and risen 35% in 2023. In a period of three years, the shares of wire and cable maker have grown 345%, delivering multibagger returns for investors. Total 0.19 lakh shares of Polycab India changed hands amounting to a turnover of Rs 6.57 lakh on BSE. Market cap of the firm stood at Rs 52,066 crore on Tuesday.

In terms of technicals, the relative strength index (RSI) of the stock stands at 50.9, signaling the stock is neither oversold nor overbought. Polycab India has a one-year beta of 0.7, indicating low volatility during the period.

On June 21, the stock turned ex-dividend for a dividend of Rs 20 per equity share of face value of Rs 10 each i.e., a 200 per cent payout for the financial year 2022-23 subject to the approval of the shareholders at the annual general meeting (AGM).

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The Board of Directors of Polycab India recommended the dividend for the financial year 2022-23 during earnings announcement for the March 2023 quarter and fiscal.

Polycab India reported a 31% rise in its fourth quarter profit for the financial year 2022-23 (FY23). Net profit rose to Rs 424.75 crore in the last quarter against Rs 322.15 crore in the same period last year. Revenue climbed 9 per cent to Rs 4323 crore in Q4 FY23 against Rs 3969 crore in Q4 FY22.

According to annual earnings for the fiscal ended March 2023, the firm reported a profit of Rs 424.8 crore against a profit of Rs 322.2 crore in the year ago period. However, sales zoomed to Rs 4375.2 crore in the March 2023 fiscal against Rs 3986.8 crore for the fiscal ended March 2022.

Polycab India Limited is the country's largest manufacturer of wires and cables and one of the fastest growing FMEG companies with a consolidated turnover of Rs 122 billion in FY22. The company's business operations span across India through 23 manufacturing facilities, 15 plus offices and 25 plus warehouses.

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