POLYCAB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | POLYCAB | Market Cap | 1,08,106 Cr. | Current Price | 7,180 ₹ | High / Low | 8,724 ₹ |
| Stock P/E | 41.7 | Book Value | 697 ₹ | Dividend Yield | 0.49 % | ROCE | 29.7 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 7,654 ₹ | DMA 200 | 7,244 ₹ |
| Chg in FII Hold | 0.86 % | Chg in DII Hold | -0.57 % | PAT Qtr | 618 Cr. | PAT Prev Qtr | 675 Cr. |
| RSI | 38.2 | MACD | -138 | Volume | 6,62,413 | Avg Vol 1Wk | 5,98,046 |
| Low price | 4,567 ₹ | High price | 8,724 ₹ | PEG Ratio | 1.28 | Debt to equity | 0.01 |
| 52w Index | 62.8 % | Qtr Profit Var | 36.4 % | EPS | 172 ₹ | Industry PE | 19.1 |
📊 Polycab shows strong fundamentals but is technically weak in the short term. The RSI at 38.2 and negative MACD (-138) indicate bearish momentum. The stock is trading below its 50 DMA (7,654 ₹) but close to its 200 DMA (7,244 ₹), which acts as support. This makes it a cautious swing trade candidate, with potential if it stabilizes near support.
💡 Optimal Entry Price: 7,100–7,250 ₹ (near 200 DMA support)
💡 Exit Strategy (if already holding): Consider exiting around 7,650–7,700 ₹ (50 DMA resistance) unless momentum strengthens.
🌟 Positive
- Strong ROCE (29.7%) and ROE (21.4%) show efficient capital use.
- Debt-to-equity ratio of 0.01 indicates financial stability.
- EPS of 172 ₹ supports long-term earnings growth.
- FII holdings increased (+0.86%), reflecting foreign investor confidence.
⚠️ Limitation
- High P/E ratio (41.7) compared to industry average (19.1), suggesting overvaluation.
- Dividend yield is low (0.49%), limiting passive income.
- Quarterly PAT declined (618 Cr. vs 675 Cr.), showing short-term weakness.
📉 Company Negative News
- Recent quarterly profit decline.
- Weak technical indicators: RSI near oversold and MACD negative.
📈 Company Positive News
- Quarterly profit variation of 36.4% shows strong growth potential.
- Market cap above 1 lakh Cr. confirms industry leadership.
- Strong demand outlook in cables and wires sector.
🏭 Industry
- Industry P/E at 19.1, while Polycab trades at a premium.
- Electrical equipment sector benefits from infrastructure expansion in India.
- Competition is strong, but Polycab maintains brand leadership.
✅ Conclusion
Polycab is fundamentally strong but faces short-term technical weakness. For swing trading, entry near 7,100–7,250 ₹ is favorable, with an exit around 7,650–7,700 ₹. Long-term investors may continue holding due to strong fundamentals, but traders should remain cautious until momentum improves.