POLYCAB - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.4
| Stock Code | POLYCAB | Market Cap | 1,49,899 Cr. | Current Price | 9,952 ₹ | High / Low | 10,014 ₹ |
| Stock P/E | 61.3 | Book Value | 787 ₹ | Dividend Yield | 0.47 % | ROCE | 32.9 % |
| ROE | 22.7 % | Face Value | 10.0 ₹ | DMA 50 | 8,968 ₹ | DMA 200 | 7,896 ₹ |
| Chg in FII Hold | 3.39 % | Chg in DII Hold | -3.18 % | PAT Qtr | 750 Cr. | PAT Prev Qtr | 614 Cr. |
| RSI | 70.3 | MACD | 252 | Volume | 2,79,025 | Avg Vol 1Wk | 3,23,831 |
| Low price | 5,786 ₹ | High price | 10,014 ₹ | PEG Ratio | 2.33 | Debt to equity | 0.01 |
| 52w Index | 98.6 % | Qtr Profit Var | 3.32 % | EPS | 173 ₹ | Industry PE | 26.3 |
📊 POLYCAB demonstrates strong fundamentals with high ROCE (32.9%) and ROE (22.7%), minimal debt-to-equity (0.01), and consistent profit growth. Technical indicators such as RSI (70.3) and MACD (252) suggest bullish momentum, though RSI indicates overbought conditions. Volume remains healthy, confirming active participation. However, the elevated P/E (61.3 vs industry 26.3) highlights overvaluation risk.
💡 Optimal Entry Price: Around 8,950–9,000 ₹ (near 50 DMA support).
🚪 Exit Strategy: If already holding, consider booking profits near 10,000 ₹ (recent high resistance) or trail stop-loss at 9,400 ₹ to safeguard gains.
🌟 Positive
- 📈 Strong ROCE (32.9%) and ROE (22.7%) reflecting efficient capital use.
- 💰 Very low debt-to-equity ratio (0.01) ensures financial stability.
- 📊 Quarterly PAT growth (750 Cr vs 614 Cr).
- 📉 FII holdings increased (+3.39%), showing institutional confidence.
⚠️ Limitation
- 📌 High P/E (61.3) compared to industry average (26.3).
- 📌 PEG ratio of 2.33 suggests growth may not justify valuation.
- 📌 DII holdings decreased (-3.18%), showing mixed sentiment.
- 📌 RSI at 70.3 indicates overbought territory.
📰 Company Negative News
- No major negative news reported recently, but valuation concerns persist.
📰 Company Positive News
- Consistent profit growth and strong demand in electricals and cables sector.
- Expansion plans and market leadership in wires & cables.
🏭 Industry
- Industry P/E at 26.3, indicating POLYCAB trades at a premium.
- Electricals and cables sector benefiting from infrastructure growth in India.
✅ Conclusion
POLYCAB is fundamentally strong with bullish technicals, making it a suitable candidate for swing trading. Entry near 8,950–9,000 ₹ offers a favorable risk-reward setup, while profit booking near 10,000 ₹ is prudent. Overvaluation and overbought RSI remain key risks, so disciplined stop-loss management is essential.
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