Why Polycab India Share Fall 9%?

In the last one month, shares of Polycab India have fallen by 14 percent. However, it has given a return of 37 per cent in the last 6 months. The stock has gained 84 per cent in the last one year. Not only this, its investors have made bumper profits of 677 percent in the last 4 years.

Polycab India Share Fall 9%

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The sharp decline in shares of Polycab India Ltd on Tuesday was attributed to reports of tax evasion, causing the stock to slump 9.26% to a day low of Rs 4,850. Trading volume on BSE was significantly higher than the two-week average, with around 2.44 lakh shares changing hands. The turnover on the counter stood at Rs 122.70, resulting in a market capitalisation of Rs 73,101.06 crore

According to a statement filed with the stock exchange, the income tax department concluded its search operations at premises and plants related to Polycab in December last year. The company cooperated fully with the officials during the proceedings and provided the necessary clarifications and details. Polycab stated that it would promptly inform the exchanges of any outcomes from the search operations upon receiving them from the income tax department.

However, market expert Ravi Singh attributed the stock’s decline to reports of tax evasion. He also mentioned that Polycab’s daily charts indicate weakness and suggested that the stock may fall to around Rs 4,500 in the near term. He added that strong resistance can be expected at Rs 5,000.

Based on the statements from Jigar S Patel and AR Ramachandran, it can be inferred that Polycab India is currently in a bearish trend. The support level is at Rs 4,600 and the resistance level is at Rs 5,000. A decisive close below Rs 4,800 may lead to further downside till Rs 4,500. The expected trading range for the next month is between Rs 4,500 and Rs 5,000.

AR Ramachandran also mentioned that Polycab India is oversold on daily charts, with the next support level at Rs 4,798. Investors should only consider buying if there is a daily close above the resistance level of Rs 5,015. The next support level below Rs 4,798 is at Rs 4,496.

The counter is trading below the 5-day, 10-, 20-, 30-, 50- and 100-day simple moving averages (SMAs), indicating a downward trend. However, it is trading higher than the 150-day and 200-day SMAs. The 14-day relative strength index (RSI) is at 28.19, which is below the oversold level of 30.

Overall, the analysis suggests that Polycab India is currently in a bearish trend and investors should be cautious.

The company’s stock has a price-to-equity (P/E) ratio of 48.79 against a price-to-book (P/B) value of 11.15.

Polycab is yet to issue an official statement on reports of tax evasion.

The company is the country’s largest manufacturer of wires and cables. Polycab’s business operations span across India through 23 manufacturing facilities, 15-plus offices and 25-plus warehouses.

 

(Disclaimer: TazaVarta provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)