Multibagger stock with zero debt rose 200% in three years: Price targets, financials, technicals and more 

Shares of Polycab India, the market leader in the wires and cables industry, have generated 200% returns in three years. The rally comes even as the stock's price to equity ratio (PE ratio) seems high at 56.62 similar to the sector's PE of 56.08. On similar lines, the price to book ratio is on the higher side at 12.32 compared to historical levels. However, the stock has recorded a 40.13% and 39.43% rise in its earnings per share (EPS) for the fiscal ended March 2024 and March 2023, respectively. An annual rise in EPS signals that the company has seen a rise in net income and subsequently profit during the period.

Debt to equity ratio stands at 0.01, signaling the firm is debt free. Meanwhile, in the current trading session, the Polycab India stock was trading on a flat note at Rs 6717 on Wednesday against the  previous close of Rs 6766.30.

The multibagger stock has gained 28.52% in a year and risen 40% in six months.

Total 5383 shares of the firm changed hands amounting to a turnover of Rs 3.60 crore on BSE. Market cap of the firm stood at Rs 1.01 lakh crore in the current session.

Polycab India has a one-year beta of 0.9, indicating very low volatility during the period. Polycab India shares stand higher than the 20 day, 50 day, 100 day, 200 day and lower than the 5 day, 10 day, moving averages.

The fast moving electric goods (FMEG) stock is neither overbought nor oversold on charts, indicates its RSI at 53.8.

SBI Securities has a target price of Rs 7,979.6 on the Polycab stock.

The brokerage likes Polycab due to its diversified product range and strong infrastructure. The company boasts 28 manufacturing facilities and a vast distribution network across India. Moreover, Polycab's revenue guidance of Rs 20,000 crore by FY26 may be revised upward, given its strong performance with over Rs 18,000 crore in FY24. The company expects growth, despite a mixed Q1 FY25, with plans for significant capex to expand capacity and boost revenue, said SBI Securities.

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 a price target of Rs 7,500," said Motilal Oswal.

Polycab India reported a marginal decline in consolidated net profit to Rs 401.62 crore in the June 2024 quarter against a net profit of Rs 403.16 crore in the same period last fiscal. Consolidated revenue from operations stood at Rs 4,698 crore in the first quarter against Rs 3,889.38 crore in the year-ago period.

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.