Polycab India has a total market share of over 24 percent.
Polycab India stock has returned 265 percent year-to-date since its listing.
Axis Securities says that this stock will have a good rally in the short term.
New Delhi. Shares of Polycab India, a company that builds its and its in domestic research and brokerage firm Axis Securities, are seeing strong gains. Brokerages say the stock could do investors good in the short term. While rating this stock as Buy, the brokerage said there are several factors, which indicate that this stock may take a long flight in the near future.
The stock also registered a rally on BSE on Monday, August 1. Today the stock closed at Rs 2,352.05 with a gain of 1.56 percent. Polycab India is a leading manufacturer of cables and wires in India. In 2009, the company diversified into EPC business to cater to cable and wire needs from large EPC projects. In 2014, the company also entered the FMEG segment and started manufacturing fans, switches, switchgear, LED lights and solar products and accessories. Polycab currently has 25 manufacturing units in the country.
Also Read- Multibagger Stocks: Fertilizer Company Stocks Giving Good Returns, All-Time High With Upper Circuit Today
These factors will be faster
According to a report in LiveMint, ICICI Securities said in its note that the leadership is positioned in the organized C&W segment. Its total market share is more than 24 percent. Due to good financial position, spread of distribution network in second and third cities and strong brand recall, the company is positioned to wrest market share from unorganized players in Wires and FMEG segments.
Polycab India’s revenue grew 48% year-on-year. Similarly, FMEG business revenue grew 61 percent year-on-year to Rs 308 crore. EPC business grew by 31 percent year-on-year. The company’s export business has also grown by 62 percent year-on-year.
Also Read- Stock Market: Sensex rises 545 points, Nifty closes at 15-week high
The target price has been given at Rs 2,552
Brokerages say polycab India business will grow due to recovery in demand, new product launches and increase in exports. ICICI Securities has given Polycab India a Buy rating with a short-term target price of Rs 2,552. Polycab India’s stock has risen 186 percent in two years and has given investors a 265 percent return since its listing in 2019.
(Disclaimer: The stocks mentioned here are based on the advice of the brokerage house. If you want to invest in any of these, please consult a certified investment advisor first. News18 will not be responsible for any profit or loss you may incur.)
Tags: Business News, Money Making Tips, capital market, Stock tips
First Published: August 01, 2022, 17:29 IST