Shares of this Large-cap cable stock hit their 52-week high mark today after it announced results for Q1FY23-24. In the last five trading sessions, the scrip has jumped more than 12 percent
The stocks of Polycab India Limited hiked more than 4 percent in Wednesday’s trading session closing at Rs 4,308.85. The stock witnessed an intra-day high of Rs 4,325.15 which was also recorded as the fresh 52-week high mark. The company has a market capitalization of Rs 64,589 crores.
The surge in the stock prices today is witnessed after a recent BSE filing dated 18th July 2023 wherein the company announced financial results for the first quarter of FY23-24.
On a YoY basis, it reported growth in operating revenues by 42 percent,i.e., from Rs 2,737 crores during June 2022 to Rs 3,889 crores in June 2023. Moreover, the net profits took a shift from Rs 222 crores to Rs 403 crores representing an increase of 82 percent.
On a contrasting note, the movement in the above-mentioned metrics, on a sequential basis, has reported a decline with the operating revenues reducing from Rs 4,324 crores during March 2023 quarter to Rs 3,889 crores in June 2023 quarter, and, the net profits going down from Rs 435 crores to Rs 403 crores.
Historically, the company has a strong base as far as the profitability ratios are concerned. The basic ones such as the return on equity (RoE) as well as return on capital employed (RoCE) increased in recent period with the former moving from 16.39 percent during FY21-22 to 19.15 percent in FY22-23, and, the latter moving from 20.34 percent to 26.12 percent.
Post the exceptional performance of the company in Q1FY23-24, Jefferies, a well-known Brokerage, revised its previous target of Rs 4,270 to Rs 4,835. The revised target indicates an upside of 12.20 percent as compared to the stock prices prevailing in the markets.
The latest shareholding data, as per March 2023 quarter, exhibits the Promoters holding a 66.2 percent stake, and the Foreign Institutional Investors (FIIs) holding a 9.78 percent stake in the company.
Polycab India Limited, incorporated in 1996, is involved in the process of manufacturing and selling cables & wires under the “Polycab” brand within and outside India. The offerings of the company include fire survival cables, rubber cables, wires, etc.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
