POLYCAB - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | POLYCAB | Market Cap | 1,22,109 Cr. | Current Price | 8,110 ₹ | High / Low | 8,724 ₹ |
| Stock P/E | 47.1 | Book Value | 697 ₹ | Dividend Yield | 0.43 % | ROCE | 29.7 % |
| ROE | 21.4 % | Face Value | 10.0 ₹ | DMA 50 | 7,696 ₹ | DMA 200 | 7,331 ₹ |
| Chg in FII Hold | 3.39 % | Chg in DII Hold | -3.18 % | PAT Qtr | 618 Cr. | PAT Prev Qtr | 675 Cr. |
| RSI | 59.1 | MACD | 185 | Volume | 4,23,460 | Avg Vol 1Wk | 3,49,919 |
| Low price | 5,446 ₹ | High price | 8,724 ₹ | PEG Ratio | 1.45 | Debt to equity | 0.01 |
| 52w Index | 81.3 % | Qtr Profit Var | 36.4 % | EPS | 172 ₹ | Industry PE | 24.5 |
Chart & Trend Analysis:
POLYCAB is trading at ₹8,110, comfortably above its 50 DMA (₹7,696) and 200 DMA (₹7,331), confirming bullish strength. RSI at 59.1 shows moderate momentum without being overbought. MACD at 185 signals strong upward momentum. Bollinger Bands place price near the upper band, reflecting sustained buying interest. Volume (4,23,460) is higher than the 1-week average (3,49,919), supporting continuation of the trend.
Momentum Signals:
- Short-term momentum remains bullish with strong FII inflows (+3.39%).
- Entry Zone: ₹7,700–₹7,900 (near DMA supports).
- Exit Zone: ₹8,600–₹8,700 (near recent highs/resistance).
- Trend Status: Trending upward; not consolidating or reversing.
Positive
- Strong ROE (21.4%) and ROCE (29.7%) highlight efficient capital use.
- EPS of ₹172 with consistent growth trajectory.
- Low debt-to-equity ratio (0.01) ensures financial stability.
- FII inflows (+3.39%) show institutional confidence.
- 52-week gain of 81.3% reflects strong investor sentiment.
Limitation
- High P/E (47.1) compared to industry average (24.5) suggests premium valuation.
- Dividend yield is low at 0.43%, limiting income appeal.
- Quarterly PAT declined (618 Cr vs 675 Cr), showing short-term earnings pressure.
Company Negative News
- Recent quarterly profit dip raises concerns about near-term earnings momentum.
- Premium valuation may limit upside in the short term.
Company Positive News
- Strong demand in cables and wires segment continues to drive growth.
- Expansion into new product categories and markets supports long-term prospects.
- Healthy institutional interest reinforces confidence in fundamentals.
Industry
- Industry P/E at 24.5 indicates POLYCAB trades at a significant premium.
- Sector growth supported by infrastructure expansion and rising demand for electrical products.
Conclusion
POLYCAB shows strong technical and fundamental momentum, supported by institutional inflows and sector growth. While valuations are stretched, disciplined entry near ₹7,700–₹7,900 with exits around ₹8,600–₹8,700 offers a risk-managed setup. Long-term investors can hold confidently, but new entrants should wait for dips to ensure margin of safety.