Shares of wires and cables manufacturer Polycab India have zoomed 65% to a new all-time high of Rs 6,242 since January’s low of Rs 3,801 when the stock made headlines due to an IT raid. On Wednesday, the shares surged nearly 8% on BSE.
After the news of IT-raid made rounds, the stock fell nearly 21% in the month of January, following which the stock continued an upward spree as the investors trained their focus on the company’s fundamentals and the general industry uptrend.
Consolidated net profit rose to Rs 546 crore for the three months ended March 31 from Rs 425 crore a year earlier, benefiting from a demand surge from the real estate and infrastructure sectors, further aided by the government as it tries to boost the economy.
The company has posted its highest-ever yearly and quarterly revenue and profitability.
“The year gone by has been truly exceptional for our Company, marked by remarkable achievements fuelled by robust demand momentum. This resulted in the Company achieving its highest-ever revenues and profitability in its history. This outstanding performance is a direct result of our steadfast focus over the years on key areas such as expanding our distribution network, enhancing manufacturing capabilities, and striving for operational and organizational excellence,” said Inder T. Jaisinghani, Chairman and MD of Polycab India.
Technically too, the stock has been performing well as it is sustaining well above all its significant exponential moving averages. The RSI is also slightly below the oversold level of 70, indicating a potential for bullish momentum.
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