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

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.

Shares of Polycab India are trading at a record high. The fast-moving electric goods (FMEG) stock is overbought on charts, which 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.

Polycab India’s stock is now trading at a record high. The fast-moving electric goods (FMEG) stock’s RSI of 74.6 suggests that it is overbought on the charts. The last trading session saw a record high of Rs 5787.10 for Polycab India’s shares. Later, on the BSE, it finished at Rs 5666.60, up 0.58%.
After rising 286% in three years, the multibagger stock has gained 127.60% in two years.

A total of 0.36 lakh of the company’s shares were traded on the BSE, translating into a turnover of Rs 20.37 crore. The company’s market capitalization was Rs 85,139 crore during the last trading session.

With a one-year beta of 0.3, Polycab India shows extremely little volatility throughout that time. The 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day moving averages are all below the share price of Polycab India.

Motilal Oswal, a financial services company, has started to cover Polycab stock.

Our preference for Polycab stems from its dominant market share in the cables and wires industry, robust profits growth, and favorable return ratios. We project Polycab’s RoE/RoCE to be 20%–21% in FY26 as opposed to roughly 19% in FY23. In FY26, RoIC would be 27%, as opposed to FY23’s 26%. We anticipate that the business will keep its high valuations. To arrive at our target price (TP) of Rs 7,500, we value the stock at 50x FY26E EPS. Coverage of the stock is first launched with a buy rating,” said Motilal Oswal.

“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,” Mehta Equities Technical Analyst Riyank Arora stated. Given that the stock is now trading significantly above its key moving averages and the initial base trend is favorable, a breakthrough above 5800 should accelerate the rally and take it closer to goals of 6500 and higher. But a decline below $5500 would be viewed as bad news for the stock.

“The next breakout for the shares of Polycab India appears when a sustained move over the Rs 5700 level is maintained,” stated Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox. This will incite new optimistic sentiment in the stock, resulting in a surge towards the Rs 6,000 mark.

Even if the stock has broken out of the preceding wave of consolidation that appeared in the Rs. 5200–5400 region, the trend is still weak below Rs. 5700. A clear violation of 5200 would be necessary to scuttle the optimistic vibe. Stock will accumulate on health-corrective drops until then.

“Polycab India is bullish but also overbought on the daily charts with strong resistance at 5790,” stated Tips2Trades’ Abhijeet. Investors should continue booking profits because a daily closing below the 5536 support level might eventually lead to a target of 4890.”

India’s largest wire and cable maker is Polycab India Limited. The company operates 23 manufacturing sites, more than 15 offices, and more than 25 warehouses throughout India.

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Hi, My self Saurabh Singh

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