POLYCAB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | POLYCAB | Market Cap | 1,12,710 Cr. | Current Price | 7,484 ₹ | High / Low | 7,948 ₹ |
| Stock P/E | 43.5 | Book Value | 697 ₹ | Dividend Yield | 0.47 % | ROCE | 29.7 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 7,316 ₹ | DMA 200 | 7,034 ₹ |
| Chg in FII Hold | 0.86 % | Chg in DII Hold | -0.57 % | PAT Qtr | 618 Cr. | PAT Prev Qtr | 675 Cr. |
| RSI | 56.8 | MACD | -112 | Volume | 9,35,792 | Avg Vol 1Wk | 4,25,343 |
| Low price | 4,555 ₹ | High price | 7,948 ₹ | PEG Ratio | 1.34 | Debt to equity | 0.01 |
| 52w Index | 86.3 % | Qtr Profit Var | 36.4 % | EPS | 172 ₹ | Industry PE | 18.2 |
📊 Analysis: POLYCAB demonstrates strong fundamentals with high ROCE (29.7%) and ROE (21.4%), negligible debt (0.01), and consistent earnings growth. The current price (₹7,484) is close to its 50 DMA (₹7,316) and 200 DMA (₹7,034), offering a technical support zone. RSI at 56.8 indicates neutral momentum, while MACD (-112) suggests mild bearish divergence. Volume is significantly higher than average, showing strong market activity. However, the stock trades at a premium valuation (P/E 43.5 vs industry 18.2), which limits upside potential. It is a good candidate for swing trading with disciplined entry and exit.
💡 Optimal Entry Price: Around ₹7,300–₹7,350 (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near ₹7,850–₹7,900 (recent high resistance). Exit below ₹7,200 if weakness persists to protect capital.
✅ Positive
- Strong ROCE (29.7%) and ROE (21.4%).
- Debt-to-equity ratio almost negligible (0.01).
- Quarterly profit growth of 36.4%.
- FII holdings increased (+0.86%).
- EPS at ₹172 reflects strong earnings power.
⚠️ Limitation
- Valuation stretched with P/E 43.5 vs industry 18.2.
- MACD shows bearish divergence.
- DII holdings decreased (-0.57%).
📉 Company Negative News
- Sequential decline in PAT (₹675 Cr → ₹618 Cr).
- Premium valuation may cap near-term upside.
📈 Company Positive News
- Strong EPS and profitability metrics.
- 52-week index at 86.3% shows strong price performance.
- Volume surge indicates strong investor interest.
🏭 Industry
- Industry P/E at 18.2 is much lower, highlighting sector affordability.
- Electrical and cables sector benefits from infrastructure and housing growth.
🔎 Conclusion
POLYCAB is fundamentally strong with excellent efficiency metrics and low debt. Despite premium valuations, it remains a good swing trade candidate with entry near ₹7,300 and exit near ₹7,850–₹7,900. Risk management is essential due to stretched valuations and mild bearish technical signals.