Polycab India shares fall after I-T dept conducts raids on 50 locations

Shares of Polycab India Ltd slipped 3% in early trade after the investigation wing of the Income Tax Department carried out searches at nearly 50 locations linked to the firm across the country on Friday. The residences and offices of the top management linked to the cables and wire maker were also being raided, according to reports. Polycab India shares slipped 3% to Rs 5450 on BSE. The stock closed at Rs 5620.60 in the previous session.

Total 0.29 lakh shares of Polycab India changed hands amounting to a turnover of Rs 16.14 crore on BSE. Market cap of the Polycab India fell to Rs 82,932 crore on Friday.  

Polycab India stock has climbed 109% in a year and risen 113%  in 2023. In a period of three years, the shares of wire and cable maker have grown 449.31%, delivering multibagger returns for investors.

In terms of technicals, the relative strength index (RSI) of Polycab India stands at 60.6, signaling neither the stock is trading in overbought nor in the oversold zone. The stock has a one-year beta of 0.2, indicating very low volatility during the period. Polycab India stock is trading lower than the 5 day, 10 day but higher than the 20 day, 50 day, 100 day and 200 day moving averages.      

The cables and wire maker reported a 59% rise in September quarter profit at Rs 426 crore. Profit for the September 2022 quarter stood at Rs 268 crore. Revenue grew 26.5% to Rs 4218 crore in Q2 against Rs 3332 crore in the September 2022 quarter.

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

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