POLYCAB - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.4

📈 Positive

• 📊 Trading above both DMA 50 (₹7,411) and DMA 200 (₹6,735) confirms strong bullish momentum.
• 📈 RSI at 50.1 and MACD at 63.7 suggest stable upward trend with room for continuation.
• 📈 ROCE of 29.7% and ROE of 21.4% reflect excellent capital efficiency.
• 📈 PAT growth of 56.7% QoQ and EPS of ₹161 show strong earnings performance.
• 📉 Very low debt-to-equity ratio of 0.01 supports financial stability.
• 📈 FII holding increased by 2.51%, indicating strong foreign investor confidence.

⚠️ Limitation

• 📉 P/E of 46.9 vs industry P/E of 22.5 suggests premium valuation.
• 📉 PEG ratio of 1.44 implies moderate overvaluation relative to growth.
• 📉 Volume (1.67 lakh) is below 1-week average (2.65 lakh), indicating reduced participation.
• 📉 Dividend yield of 0.46% is modest for income-focused investors.

🚫 Company Negative News

• 📉 No major negative news reported, but valuation and volume concerns are watchpoints.

✅ Company Positive News

• 🔌 POLYCAB continues to benefit from strong demand in electricals, cables, and FMEG segments.
• 📈 Robust quarterly earnings and expanding distribution network support long-term growth.

🏦 Industry

• 🏭 Operates in electricals and consumer durables, which benefit from infrastructure growth and urbanization.
• 📊 Industry P/E of 22.5 reflects moderate valuation benchmarks.

🧾 Conclusion

• 📈 POLYCAB is technically strong and fundamentally solid, making it a good candidate for swing trading.
• 📍 Optimal entry: ₹7,400–₹7,450 (near DMA 50 and support zone).
• 🚪 Exit if held: ₹7,850–₹7,900 (near 52-week high) unless momentum strengthens further.
• ⚠️ Suitable for swing trading with moderate risk and valuation awareness.

I can also compare POLYCAB’s swing setup with peers like Havells or Finolex to help refine your strategy.