SEBI analyst Prabhat Mittal sees continued upside, citing a bullish chart pattern and buy signals.
Polycab India shares gained 2% amid broader market weakness on Tuesday after the electrical equipment company delivered a strong performance in the fourth quarter, with its net profit rising 33% year-on-year to ₹727 crore.
Revenue from operations grew 25% to ₹6,985 crore, driven by strong growth across all business segments.
The wires and cables division — Polycab’s core segment — posted a 22% year-on-year revenue increase.
Meanwhile, the fast-moving electrical goods (FMEG) business grew by 33%, and the EPC segment led with a sharp 47% jump.
Operating margins also saw healthy expansion, with EBITDA rising nearly 35% to ₹1,025.7 crore and margin improving 110 basis points to 14.7%.
The board has recommended a final dividend of ₹35 per equity share for FY25, subject to shareholder approval.
SEBI-registered analyst Prabhat Mittal notes that following its quarterly results, Polycab India broke through all significant resistance levels and reached a high of ₹6,077.
Mittal points out that Polycab formed a double bottom at ₹4,560 and has since been making higher highs, indicating a positive short-term trend.
The stock is currently trading above both its 20-day and 50-day moving averages, and the MACD (12,26) is providing a buy signal, further supporting the bullish outlook.
Given these technical factors, Mittal suggests that traders consider buying Polycab near the ₹5,750–₹5,700 range, with a strict stop loss at ₹5,500 and a target of ₹6,200–₹6,400.
Meanwhile, Financial Independence advises keeping Polycab on the radar if it holds above ₹6,035.
Data on Stocktwits shows that retail sentiment on Polycab remains ‘bullish.’
Polycab shares have fallen 19% year-to-date (YTD).
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