POLYCAB - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.3
| Stock Code | POLYCAB | Market Cap | 1,25,626 Cr. | Current Price | 8,344 ₹ | High / Low | 8,724 ₹ |
| Stock P/E | 48.5 | Book Value | 697 ₹ | Dividend Yield | 0.42 % | ROCE | 29.7 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 7,722 ₹ | DMA 200 | 7,341 ₹ |
| Chg in FII Hold | 3.39 % | Chg in DII Hold | -3.18 % | PAT Qtr | 618 Cr. | PAT Prev Qtr | 675 Cr. |
| RSI | 64.0 | MACD | 199 | Volume | 4,61,642 | Avg Vol 1Wk | 3,88,374 |
| Low price | 5,535 ₹ | High price | 8,724 ₹ | PEG Ratio | 1.49 | Debt to equity | 0.01 |
| 52w Index | 88.1 % | Qtr Profit Var | 36.4 % | EPS | 172 ₹ | Industry PE | 24.4 |
Analysis: Polycab India is in a strong uptrend with the current price (₹8,344) trading above both DMA 50 (₹7,722) and DMA 200 (₹7,341). The RSI at 64 suggests momentum is healthy but nearing overbought levels. MACD is positive, confirming bullish sentiment. Fundamentals are solid with high ROCE (29.7%), ROE (21.4%), and very low debt-to-equity (0.01). However, the P/E of 48.5 is significantly higher than the industry average (24.4), indicating valuation risk.
Optimal Entry Price: ₹7,700–7,800 (near DMA 50 support).
Exit Strategy: If already holding, consider exiting near ₹8,700 (recent high) or if RSI crosses 70, signaling overbought conditions.
✅ Positive
- Strong ROCE (29.7%) and ROE (21.4%).
- Debt-to-equity ratio at 0.01 ensures financial stability.
- EPS of ₹172 supports earnings strength.
- FII holdings increased by 3.39%, showing foreign investor confidence.
- Quarterly profit growth of 36.4% indicates strong momentum.
⚠️ Limitation
- High P/E ratio (48.5) compared to industry average (24.4).
- DII holdings decreased by 3.18%, showing reduced domestic institutional interest.
- Dividend yield is low (0.42%), limiting passive income potential.
📉 Company Negative News
- Sequential decline in PAT (₹675 Cr → ₹618 Cr).
- Valuation concerns due to premium pricing compared to peers.
📈 Company Positive News
- Strong demand in wires & cables segment driving revenue growth.
- Expansion plans and market share gains in electricals sector.
🏭 Industry
- Industry PE at 24.4, lower than Polycab’s valuation.
- Sector growth supported by infrastructure and housing demand in India.
🔎 Conclusion
Polycab is a fundamentally strong company with growth momentum and technical strength. It is a good candidate for swing trading with entry near ₹7,700–7,800 and profit booking around ₹8,700. Caution is advised due to high valuation and RSI nearing overbought levels.