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homemarket Newsstocks NewsPolycab India shares surge for the fourth straight day to a record high

market | Dec 13, 2022 12:11 PM IST

Polycab India shares surge for the fourth straight day to a record high

By Vahishta Unwalla | Dec 13, 2022 2:10 PM IST (Updated)

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Polycab's shares gained for the fourth day in a row and have gained 10 percent during this period.

Shares of Polycab India Ltd, the largest manufacturer of wires and cables in the country, jumped over 6 percent in trade on Tuesday to hit a record high. The stock hit an all-time high of Rs 2,990.90 on high trading volumes.

The stock has gained in five out of the last six trading sessions, during which it has jumped 10 percent. Shares have risen 34 percent over the last six months.

A note from domestic brokerage Sharekhan said that the company witnessed good demand in the wires and cables segment during October and November, driven by both B2B and B2C segments. The brokerage added that easing inflationary pressures and wider reach will help the company over the medium-to-long term.

Polycab India is the leading manufacturer of wires and cables with a 22 percent market share in the organised segment. The company is well placed to capture long-term growth in the wires and cables segment led by private and government-backed infrastructure projects, according to the Sharekhan note.

The company is seeing emerging opportunities in data centers, telecom, electric vehicles and exports. It recently signed a partnership with Redington India, making the latter its national distributor for end-to-end passive networking solutions.

Polycab's telecom business forayed into the passive networking business for private and public organisations in India in March 2021. This was done with a view to boost the company's prospects ahead of the 5G rollout across the country.

Sharekhan maintained its buy rating on the stock with a price target of Rs 3,215, backed by various growth catalysts coupled with a healthy balance sheet, comfortable cash position and improving return ratios.

Shares of Polycab are trading 4.4 percent higher at Rs 2,941.25.

First Published: Dec 13, 2022 12:11 PM IST

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