⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
POLYCAB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | POLYCAB | Market Cap | 1,10,779 Cr. | Current Price | 7,361 ₹ | High / Low | 8,724 ₹ |
| Stock P/E | 42.8 | Book Value | 697 ₹ | Dividend Yield | 0.47 % | ROCE | 29.7 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 7,673 ₹ | DMA 200 | 7,245 ₹ |
| Chg in FII Hold | 0.86 % | Chg in DII Hold | -0.57 % | PAT Qtr | 618 Cr. | PAT Prev Qtr | 675 Cr. |
| RSI | 41.7 | MACD | -112 | Volume | 7,28,764 | Avg Vol 1Wk | 5,71,670 |
| Low price | 4,567 ₹ | High price | 8,724 ₹ | PEG Ratio | 1.31 | Debt to equity | 0.01 |
| 52w Index | 67.2 % | Qtr Profit Var | 36.4 % | EPS | 172 ₹ | Industry PE | 19.2 |
📊 Technical Analysis
- Trend: The stock is consolidating after a decline from highs, showing sideways movement near support.
- Moving Averages: Current price (₹7,361) is below 50 DMA (₹7,673) but above 200 DMA (₹7,245). This indicates short-term weakness but long-term support.
- RSI: 41.7 — nearing oversold levels, suggesting potential rebound.
- MACD: -112 — bearish crossover, momentum still weak.
- Bollinger Bands: Price is close to the lower band, signaling possible short-term bounce.
- Volume Trends: Current volume (7.28L) is higher than 1-week average (5.71L), showing active trading during the decline.
🎯 Entry & Exit Zones
- Support: ₹7,200 – ₹7,250 (near 200 DMA)
- Resistance: ₹7,650 – ₹7,700 (near 50 DMA)
- Optimal Entry: Around ₹7,250 – ₹7,300 if support holds.
- Exit Zone: ₹7,650 – ₹7,700 for short-term traders.
✅ Positive
- Strong ROCE (29.7%) and ROE (21.4%) show efficient capital use.
- Low debt-to-equity (0.01) ensures financial stability.
- EPS of ₹172 and quarterly profit growth (36.4%).
⚠️ Limitation
- High P/E (42.8) compared to industry average (19.2) — valuation is expensive.
- Dividend yield is low (0.47%), limiting income appeal.
📉 Company Negative News
- Sequential decline in quarterly PAT (₹675 Cr → ₹618 Cr).
- DII holding reduced by 0.57%, showing cautious stance.
📈 Company Positive News
- FII holding increased by 0.86%, reflecting foreign investor confidence.
- Strong 52-week performance (+67.2%).
🏭 Industry
- Industry PE is 19.2, much lower than Polycab’s valuation, suggesting premium pricing.
- Sector growth supported by infrastructure expansion and rising demand for cables/wires.
🔎 Conclusion
- Polycab is consolidating after a correction from highs.
- Short-term momentum remains weak, but fundamentals are strong.
- Best strategy: Accumulate near ₹7,250 support with exit around ₹7,700 resistance.
- Overall, the stock is in a consolidation phase with potential rebound if support holds.