Polycab India shares rise over 4% amid strong growth outlook; check details

The Polycab India stock hit an intraday high of ₹6,884 apiece on the NSE on Tuesday, up 4% compared to its previous close of ₹6,616.9 apiece. The stock has climbed nearly 42% in the past one year compared to a 27% increase in the equity benchmark Nifty 50 during the same period. The stock has rallied more than 23% this year so far (year-to-date) and 43.41% in the past six months.

Polycab India was in focus on August 20 after market experts predicted that the company would benefit from long-term electrification growth in India. Experts believe that the favourable demand-supply dynamics in the cables and wires industry will benefit industry leaders like Polycab India.

Polycab India’s better-than-expected domestic volume growth, domestic market share gains, and distribution-led export business model are its key strengths and provide the company with an advantage, according to experts.

Polycab India had reported a 21% growth in revenue for the quarter ended June 2024 (Q1FY25) to ₹4,698 crore compared to the year-ago period. Net profit remained flat on a year-on-year basis at ₹401.6 crore during the quarter.

In its annual report for 2023-24, Polycab India claimed that it was a market leader in India’s ₹80,000 crore cable and wires industry, with a share of 25-26% in FY24. The company’s management had earmarked ₹3,000 crore capex plan, the highest among peers.

Polycab had also entered into a partnership with Swiss cable manufacturer Brugg Cables to enter the extra high voltage (EHV) market. This makes it the second company to supply cables and wires across verticals.

Shares of Polycab India closed at ₹6,761 apiece, up 2.18% on the NSE.