Polycab India shares: FMEG stock at record high, overbought on charts; buy, sell or hold?

Shares of Polycab India are trading at their record high. The fast moving electric goods (FMEG) stock is overbought on charts, indicates its RSI at 74.6. Polycab India stock touched a record high of Rs 5787.10 in the previous trading session. Later, it closed 0.58% higher at Rs 5666.60 on BSE.

The multibagger stock has gained 127.60% in two years and risen 286% in three years.

Total 0.36 lakh shares of the firm changed hands amounting to a turnover of Rs 20.37 crore on BSE. Market cap of the firm stood at Rs 85,139 crore in the previous trading session.   

Polycab India has a one-year beta of 0.3, indicating very low volatility during the period. Polycab India shares stand higher than the  5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.      

Financial services firm Motilal Oswal has initiated coverage on the Polycab stock.

"We like Polycab due to its leadership position in the cables & wires segment, strong earnings trajectory, and return ratios. We estimate Polycab’s RoE/RoCE to be at 20%/21% in FY26 vs. ~19% in FY23. RoIC would be at 27% in FY26 vs. 26% in FY23. We expect the company to maintain its premium valuations. We value the stock at 50x FY26E EPS to arrive at our TP of Rs 7,500. We initiate coverage on the stock with a BUY rating,” said Motilal Oswal.

Riyank Arora Technical Analyst at Mehta Equities said, "The stock has touched and gone above its all-time high mark of 5733 on its daily timeframe charts, making a fresh all-time high of 5789 in Tuesday's session. With the stock trading well above its important moving averages and the initial base trend being positive, any breakout above 5800 should push the rally further towards targets of 6500 and above. However, a break below 5500 would be considered a negative sign for the stock."

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, “The next breakout for the shares of Polycab India appears when a sustained move over Rs 5700 level is maintained. This will trigger fresh bullishness in the stock, leading a rally to Rs 6000-mark. While the stock has broken out of the tide consolidation emerged earlier in the range of Rs 5200 - 5400 levels, the trend remains sluggish below 5700 mark. Only a decisive breach of 5200 could derail the positive sentiment. Until then, stock to witness accumulation on health corrective dips.”

Abhijeet from Tips2trades said, "Polycab India is bullish but also  overbought on the Daily charts with strong resistance at 5790. Investors should keep booking profits as a Daily close below support of 5536 could lead to target of 4890 in the near term."

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.