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Polycab India shares are on a bull run since last nine sessions; what’s next?

Polycab India shares are on a bull run since last nine sessions; what’s next?

Multibagger stock: Polycab India shares hit their all-time of Rs 4,848 on BSE during yesterday’s session. They rose 12.5% intraday to the record high. Later, the stock ended 9.42% higher on BSE.

Aseem Thapliyal
Aseem Thapliyal
  • Updated Jul 21, 2023 12:46 PM IST
Polycab India shares are on a bull run since last nine sessions; what’s next? Polycab India share price today: Total 0.72 lakh shares of the firm changed hands amounting to a turnover of Rs 28.75 lakh on BSE. Market cap of the firm rose to Rs 61,662 crore on Tuesday.

Shares of multibagger Polycab India Ltd are on a roll. The stock of electrical wires and cable maker has risen by Rs 1205 or 34.34% in the last nine sessions on BSE. The stock, which closed at Rs 3509.70 on July 7, 2023 ended at an all-time closing high of Rs 4715.10 on July 20 (previous session). During yesterday’s session, the stock hit its all-time of Rs 4,848 on BSE. It rose 12.5% intraday to the record high. Later, the stock ended 9.42% higher on BSE.

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Total 2.53 lakh shares of the firm changed hands amounting to a turnover of Rs 115.28 crore on BSE. Market cap of the firm rose to Rs 70,685 crore on Thursday.         

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In terms of technicals, the relative strength index (RSI) of the stock stands at 88.9, signaling the stock is overbought. Polycab India has a one-year beta of 0.8, indicating very low volatility during the period. Polycab India shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.        

The stock has climbed 114.46% in a year and risen 83.43% in 2023. In a period of three years, the shares of wire and cable maker have grown 459.76%, delivering multibagger returns for investors.   

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The Q1 earnings were announced on July 18.  

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The cables and wire maker logged a 81.68% rise in profit at Rs 399.27 crore for the June 2023 quarter against Rs 219.76 crore profit in the corresponding quarter of previous fiscal. Sales climbed 42.13% to Rs 3889.38 crore in Q1 of this fiscal against Rs 2736.56 crore in the June 2022 quarter. 

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After the earnings, Polycab India stock zoomed 5.47% to a record high of Rs 4126 in the same session.    

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has witnessed a decent bull run in the last two weeks gaining from Rs 3500 levels to scale the high of Rs 4924 levels witnessing some profit booking near the peak zone with the RSI hovering near the highly overbought zone. The near-term support would be at around Rs 4500 levels and with the overall trend maintained strong, one can expect for further rise to reach the next targets of Rs 5100-5300 levels." 

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Abhijeet from Tips2trades said, "Polycab stock price is overbought on the daily charts with next resistance at Rs 5095. Investors should book profits at current levels as a close below support of Rs 4498 could lead to Rs 4150 in the near term." 

Polycab India Limited is the country's largest manufacturer of wires and cables and Fast Moving Electrical Goods (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.   

Also read: Stocks that market analysts recommended on July 21, 2023: Titagarh Rail Systems, Polycab India, Bank of Maharashtra, VRL Logistics

Also read: Reliance Industries, Infosys, LIC, Tech Mahindra, HUL, Ashok Leyland, others among stocks to watch on July 21, 2023

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jul 21, 2023 7:51 AM IST
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