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POLYCAB - IntraDay Trade Analysis with Live Signals

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Rating: 4.4

Last Updated Time : 03 May 26, 09:02 am

IntraDay Trade Rating: 4.4

Stock Code POLYCAB Market Cap 1,22,109 Cr. Current Price 8,110 ₹ High / Low 8,724 ₹
Stock P/E 47.1 Book Value 697 ₹ Dividend Yield 0.43 % ROCE 29.7 %
ROE 21.4 % Face Value 10.0 ₹ DMA 50 7,696 ₹ DMA 200 7,331 ₹
Chg in FII Hold 3.39 % Chg in DII Hold -3.18 % PAT Qtr 618 Cr. PAT Prev Qtr 675 Cr.
RSI 59.1 MACD 185 Volume 4,23,460 Avg Vol 1Wk 3,49,919
Low price 5,446 ₹ High price 8,724 ₹ PEG Ratio 1.45 Debt to equity 0.01
52w Index 81.3 % Qtr Profit Var 36.4 % EPS 172 ₹ Industry PE 24.5

Analysis:

POLYCAB shows healthy intraday momentum with RSI at 59.1 and MACD strongly positive at 185. Volume (4,23,460) is above the 1-week average (3,49,919), confirming active participation. Price is trading above DMA 50 (7,696 ₹) and DMA 200 (7,331 ₹), reinforcing bullish bias for the session.

Optimal Buy Price:

Buy near 8,120–8,150 ₹ if price sustains above VWAP and intraday support.

Exit Levels:

- Profit-taking: 8,250–8,300 ₹ (short-term resistance zone)

- Stop-loss: 8,080 ₹ (below intraday support)

If Already Holding:

Exit intraday if RSI dips below 57 or if volume weakens below average while price fails to hold 8,120 ₹. Trail stop-loss to 8,180 ₹ once price moves above 8,250 ₹.

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Positive

- Strong ROE (21.4%) and ROCE (29.7%)

- Low debt-to-equity (0.01) ensures financial stability

- EPS at ₹172 supports long-term earnings growth

- FII holding increased (+3.39%), showing institutional confidence

- PEG ratio at 1.45 indicates valuation is balanced with growth

Limitation

- High P/E (47.1) vs industry average (24.5) indicates premium valuation

- Dividend yield at 0.43% is low for income investors

- RSI near 59 suggests limited upside before overbought zone

Company Negative News

- Quarterly PAT dipped from 675 Cr. to 618 Cr.

- DII holding reduced (-3.18%), showing weaker domestic sentiment

Company Positive News

- Strong demand in cables and wires sector

- Expansion into new product categories and markets

- Healthy institutional interest and strong 52-week performance (+81.3%)

Industry

- Industry PE at 24.5 highlights sector trading at lower multiples

- Infrastructure and housing demand driving cable/wire consumption

- Competitive landscape with peers offering value-based alternatives

Conclusion

POLYCAB is a strong intraday candidate with momentum and volume support. Optimal buy near 8,120–8,150 ₹ with profit exits around 8,250–8,300 ₹. Risk-managed stop-loss at 8,080 ₹ is essential. Existing holders should trail stops and monitor RSI/volume for intraday exit signals.

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