scorecardresearchPolycab India stock scales nearly 5% to hit 52-week high on strong Q1FY24

Polycab India stock scales nearly 5% to hit 52-week high on strong Q1FY24 results

Updated: 19 Jul 2023, 11:49 AM IST
TL;DR.

Polycab India reported an impressive 46 percent year-on-year revenue growth in its wires and cables business, with revenues reaching 3,487.4 crore.

Polycab India Limited is an India-based manufacturer of wires and cables and is engaged in fast-moving electrical goods (FMEG).

Polycab India Limited is an India-based manufacturer of wires and cables and is engaged in fast-moving electrical goods (FMEG).

Shares of Polycab India, the country’s largest wires and cables manufacturer, surged nearly 5 percent to reach a new 52-week high on Wednesday, July 19, following the announcement of robust financial results for the June 2023 quarter (Q1FY24).

The stock, which closed nearly 6 percent higher during Tuesday’s trade, surged 4.7 percent on Wednesday, extending its gains into the second consecutive day.

This came after the company reported an impressive 81.7 percent year-on-year (YoY) increase in profit, reaching 399.27 crore, primarily driven by a strong operational performance.

In the same quarter previous year, the company had recorded a profit of 219.76 crore, indicating a substantial improvement in its financial performance.

During Wednesday’s trade, the stock opened at a price of Rs. 4,188 per share, against the previous close of Rs. 4,128.15 per share and grew further during the early trading session to reach a 52-week high of Rs. 4,325.15.

It was trading at 4,272.05 apiece, up by 3.49 percent, at 11:10 a.m. on the NSE.

The stock touched a 52-week low of Rs. 2,132 on July 19, 2022, indicating that at the current price, the stock is trading nearly 100 percent above that level.

The stock has grown nearly 21 percent in the last one month. Moreover, in the past six months, it has surged by over 51 percent. Furthermore, the stock has yielded a return of almost 570 percent in the last five years.

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Stock price chart of Polycab India

Polycab India reported an impressive 46 percent year-on-year revenue growth in its wires and cables business, with revenues reaching 3,487.4 crore. The company attributed this significant increase to strong volume growth in both domestic and international markets.

Furthermore, the company witnessed a substantial 88 percent year-on-year surge in revenue from its international business, which accounted for 8.9 percent of the consolidated revenue.

The domestic distribution-driven business continued its robust growth momentum, while the institutional business experienced remarkable acceleration.

The wire maker expanded its global reach, establishing a presence in 72 countries, further bolstering its position in the international market.

Moreover, the company witnessed a significant year-on-year improvement in its EBITDA margin, which increased by 280 basis points (bps) to reach 14.1 percent.

Jefferies India, a brokerage firm, expressed admiration for the consistent and outstanding performance of Polycab India Ltd. and reaffirmed its ‘buy’ rating on the stock, raising the target price to 4,835 per share.

Polycab India Limited is an India-based manufacturer of wires and cables and is engaged in fast-moving electrical goods (FMEG). The company owns approximately 23 manufacturing facilities, located across the states of Gujarat, Maharashtra, Uttarakhand, and the union territory of Daman.

According to a MintGenie poll, 27 analysts on an average have maintained a ‘BUY’ call on the stock.

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First Published: 19 Jul 2023, 11:49 AM IST