Polycab India shares hit record high ahead of Q2 earnings; here's what to expect

Shares of Polycab India Ltd hit their all-time high ahead of the cables and wire maker’s September quarter earnings set to be announced today. Polycab India stock gained 0.47% to a high of Rs 5492.85 in the afternoon session today against the previous close of Rs 5466.75 on BSE. Total 9192 shares of the firm changed hands amounting to a turnover of Rs 5.01 crore on BSE. Market cap of the firm stood at Rs 81,785 crore on Wednesday.

Polycab India 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 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has climbed 98.14% in a year and risen 111.31% in 2023. In a period of three years, the shares of wire and cable maker have grown 576.45%, delivering multibagger returns for investors.

Kotak Institutional Equities expects Polycab India to deliver another robust quarterly performance on a yoy basis, driven largely by the wires & cables segment, which continues to benefit from government spending on infrastructure and sustained demand from the real estate sector.

It expects 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 is 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 is expected to rise 54% to Rs 417.4 crore in Q2 compared to Rs 270.05 crore in Q2 of the previous fiscal.

Revenue is expected to gain 21% to Rs 4016.4 crore in Q2 against Rs 3332.4 crore in the September 2022 quarter.

The FMEG firm 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.

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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