POLYCAB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.6
| Stock Code | POLYCAB | Market Cap | 1,39,865 Cr. | Current Price | 9,290 ₹ | High / Low | 9,316 ₹ |
| Stock P/E | 53.8 | Book Value | 787 ₹ | Dividend Yield | 0.38 % | ROCE | 34.0 % |
| ROE | 24.1 % | Face Value | 10.0 ₹ | DMA 50 | 8,289 ₹ | DMA 200 | 7,560 ₹ |
| Chg in FII Hold | 3.39 % | Chg in DII Hold | -3.18 % | PAT Qtr | 750 Cr. | PAT Prev Qtr | 614 Cr. |
| RSI | 72.5 | MACD | 367 | Volume | 1,90,837 | Avg Vol 1Wk | 2,85,537 |
| Low price | 5,760 ₹ | High price | 9,316 ₹ | PEG Ratio | 1.86 | Debt to equity | 0.01 |
| 52w Index | 99.2 % | Qtr Profit Var | 3.32 % | EPS | 173 ₹ | Industry PE | 25.3 |
📈 Trend Analysis: POLYCAB is in a strong bullish trend, trading close to its 52-week high of ₹9,316. The price is comfortably above the 50 DMA (₹8,289) and 200 DMA (₹7,560), confirming sustained upward momentum.
📊 RSI: At 72.5, RSI indicates overbought conditions, suggesting limited upside in the short term and potential for minor corrections.
📉 MACD: Positive MACD at 367 supports bullish momentum, aligning with the ongoing uptrend.
📌 Bollinger Bands: Price is near the upper band, signaling possible consolidation or short-term pullback.
🔎 Volume Trends: Current volume (1,90,837) is below the 1-week average (2,85,537), showing reduced participation at higher levels, which may precede consolidation.
💡 Momentum Signals: Short-term momentum remains positive but stretched. Optimal entry zone lies near support at ₹8,800–₹8,950. Exit/resistance zone is around ₹9,300–₹9,350.
📌 Market Phase: The stock is trending with signs of near-term consolidation due to overbought RSI and reduced volume.
Positive
- 🚀 Strong uptrend above key moving averages.
- 💰 Quarterly PAT growth (₹750 Cr vs ₹614 Cr).
- 📈 High ROCE (34%) and ROE (24.1%) indicate efficient capital use.
- 📊 FII holdings increased by 3.39%, showing foreign investor confidence.
Limitation
- ⚠️ Elevated P/E ratio (53.8) compared to industry PE (25.3), suggesting expensive valuation.
- 📉 RSI in overbought zone may trigger short-term corrections.
- 🔎 Lower trading volume near highs indicates cautious sentiment.
Company Negative News
- 📉 DII holdings decreased by 3.18%, showing reduced domestic institutional interest.
- ⚠️ Valuation concerns due to high PEG ratio (1.86).
Company Positive News
- 📈 Consistent profit growth with quarterly PAT up 3.32%.
- 💡 Strong EPS of ₹173 supports long-term earnings visibility.
- 🔒 Very low debt-to-equity (0.01), ensuring financial stability.
Industry
- 🏭 Industry PE at 25.3, significantly lower than POLYCAB’s, highlighting premium valuation.
- 📊 Sector growth driven by infrastructure and housing demand.
Conclusion
✅ POLYCAB is in a strong bullish trend with solid fundamentals and investor confidence. However, overbought RSI and premium valuations suggest caution for fresh entries. Ideal strategy: accumulate near ₹8,800–₹8,950 support zones and consider booking profits near ₹9,300–₹9,350 resistance.