Polycab India Ltd Gains 8.80%: Key Drivers Behind This Week’s Rally

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Polycab India Ltd delivered a strong weekly performance, rising 8.80% from ₹7,012.60 to ₹7,629.70 between 2 and 6 February 2026, significantly outperforming the Sensex’s 1.51% gain over the same period. The stock’s momentum was driven by a robust intraday surge on 3 February and a notable shift in valuation metrics signalling heightened price attractiveness amid sector dynamics.

Key Events This Week

2 Feb: Stock opens week at ₹7,033.95, modest gain despite Sensex decline

3 Feb: Intraday high of ₹7,697.70 with a 7.19% daily surge

4 Feb: Valuation metrics shift to “very expensive” reflecting premium pricing

6 Feb: Week closes at ₹7,629.70, up 8.80% for the week

Week Open
Rs.7,012.60
Week Close
Rs.7,629.70
+8.80%
Week High
Rs.7,697.70
vs Sensex
+7.29%

2 February 2026: Modest Start Amid Broader Market Weakness

Polycab India Ltd began the week at ₹7,033.95, registering a modest gain of 0.30% despite the Sensex falling 1.03% to 35,814.09. The stock’s resilience in a declining market suggested early buying interest and defensive strength relative to the broader benchmark. Trading volume stood at 65,695 shares, indicating steady participation.

3 February 2026: Intraday High and Strong Outperformance

On 3 February, Polycab India Ltd surged 6.72% to close at ₹7,506.75, with an intraday peak of ₹7,697.70 representing a 9.44% rise from the previous close. This intraday high brought the stock within 4.85% of its 52-week peak of ₹7,947.35, underscoring its proximity to a key resistance level. The stock outperformed the Sensex, which gained 2.63% to 36,755.96, by a wide margin. The day’s volume was 19,387 shares, reflecting focused buying interest.

Technical indicators supported this momentum, with the stock trading above all major moving averages, signalling sustained positive sentiment. The 7.19% daily gain was a standout in the cables and electricals sector, which itself advanced 5.4%, highlighting Polycab’s leadership within its industry group.

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4 February 2026: Valuation Shift Highlights Price Attractiveness

Polycab India Ltd’s valuation profile shifted notably on 4 February, moving from an “expensive” to a “very expensive” rating. The stock closed at ₹7,628.35, up 1.62% on the day, supported by strong financial metrics despite elevated multiples. The price-to-earnings (P/E) ratio stood at 42.91, with a price-to-book value (P/BV) of 10.64, reflecting a premium valuation relative to peers such as KEI Industries, which trades at a P/E of 48.87 but remains classified as “expensive.”

Other valuation multiples included an EV/EBITDA of 28.45 and EV/EBIT of 31.44, signalling stretched but justified pricing given the company’s operational efficiency. Polycab’s return on capital employed (ROCE) was an impressive 40.92%, and return on equity (ROE) stood at 23.24%, underscoring strong profitability and capital utilisation.

The PEG ratio near 1.01 suggested that the premium valuation was broadly aligned with expected earnings growth, mitigating concerns of overvaluation. The company’s market capitalisation grade remained at 2, indicating a mid-tier valuation status within the sector.

5 February 2026: Minor Correction Amid Lower Volumes

On 5 February, Polycab India Ltd experienced a slight pullback, closing at ₹7,537.70, down 1.19% on low volume of 4,086 shares. This minor correction followed the strong gains earlier in the week and coincided with a 0.53% decline in the Sensex to 36,695.11. The dip appeared to be a short-term consolidation rather than a reversal, as the stock remained above key moving averages.

6 February 2026: Week Closes Strong with Renewed Gains

Polycab India Ltd rebounded on the final trading day, rising 1.22% to close at ₹7,629.70 on volume of 12,062 shares. The Sensex gained a marginal 0.10% to 36,730.20. The stock’s recovery capped a week of robust gains, finishing 8.80% higher from the previous Friday’s close of ₹7,012.60. This performance significantly outpaced the Sensex’s 1.51% weekly advance, highlighting Polycab’s strong relative momentum.

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Date Stock Price Day Change Sensex Day Change
2026-02-02 Rs.7,033.95 +0.30% 35,814.09 -1.03%
2026-02-03 Rs.7,506.75 +6.72% 36,755.96 +2.63%
2026-02-04 Rs.7,628.35 +1.62% 36,890.21 +0.37%
2026-02-05 Rs.7,537.70 -1.19% 36,695.11 -0.53%
2026-02-06 Rs.7,629.70 +1.22% 36,730.20 +0.10%

Key Takeaways

Strong Outperformance: Polycab India Ltd’s 8.80% weekly gain far exceeded the Sensex’s 1.51% rise, reflecting robust investor demand and sector leadership.

Technical Momentum: The stock’s sustained trading above key moving averages and intraday highs near the 52-week peak indicate positive technical momentum and resilience.

Valuation Premium: Elevated valuation multiples, including a P/E of 42.91 and P/BV of 10.64, place Polycab in the “very expensive” category, signalling high market expectations for growth and profitability.

Financial Strength: Strong ROCE of 40.92% and ROE of 23.24% justify the premium valuation, highlighting efficient capital utilisation and shareholder value creation.

Volume and Volatility: Trading volumes fluctuated during the week, with a notable dip on 5 February accompanying a minor price correction, suggesting short-term profit-taking amid strong overall momentum.

Sector Context: Polycab’s gains outpaced the cables and electricals sector’s 5.4% advance on 3 February, underscoring its role as a key outperformer within the industry.

Conclusion

Polycab India Ltd demonstrated a compelling combination of strong price appreciation and robust financial fundamentals during the week of 2 to 6 February 2026. The stock’s 8.80% gain, driven by a significant intraday surge and a favourable shift in valuation metrics, highlights its leadership position in the cables and electricals sector. While the elevated valuation multiples warrant cautious monitoring, the company’s impressive returns on capital and equity provide a solid foundation for sustained performance. Investors should continue to observe quarterly earnings and sector developments to assess the durability of this momentum amid evolving market conditions.

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