Strong Momentum Drives New High
Polycab India’s stock price has demonstrated notable strength, gaining 0.96% on the day and outperforming its sector by 1%. The stock has recorded consecutive gains over the past two sessions, delivering a cumulative return of 1.69% during this period. This upward trajectory is supported by the stock trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bullish momentum.
The new peak of Rs. 7,916.5 represents a substantial rise from its 52-week low of Rs. 4,557.45, reflecting a year-long appreciation of 9.99%. This outperformance is notable against the Sensex’s 8.50% gain over the same timeframe, highlighting Polycab India’s relative strength within the broader market.
Market Context and Sector Positioning
While the Sensex opened lower at 84,620.40, down 442.94 points (-0.52%), it has since recovered slightly to trade at 84,889.96, still 1.49% shy of its own 52-week high of 86,159.02. The benchmark index remains above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market environment despite short-term volatility.
Within this context, Polycab India’s performance stands out in the Cables - Electricals sector, where it holds the distinction of being the largest company by market capitalisation at Rs. 1,17,071 crore. The company accounts for 38.04% of the sector’s total market cap and generates 27.38% of the industry’s annual sales, underscoring its dominant market position.
Our current Stock of the Month is out! This Large Cap from Automobiles - Passenger Cars emerged as the single best opportunity from our elite universe. Get the details now!
- - Current monthly selection
- - Single best opportunity
- - Elite universe pick
Financial Strength Underpinning the Rally
Polycab India’s recent price surge is supported by its strong fundamental profile. The company boasts an average Return on Equity (ROE) of 20.31%, reflecting efficient capital utilisation and profitability. Its net sales have grown at an annualised rate of 26.06%, while operating profit has expanded at an even faster pace of 31.43%, signalling healthy margin improvement alongside top-line growth.
In the latest six-month period, net sales reached Rs. 12,383.19 crore, marking a 21.45% increase year-on-year. The company’s Return on Capital Employed (ROCE) for the half-year stood at a robust 32.18%, while the quarterly operating profit to net sales ratio hit a high of 15.76%, underscoring operational efficiency.
Polycab India’s balance sheet remains conservative, with an average debt-to-equity ratio of zero, indicating a debt-free status that enhances financial stability and reduces risk exposure.
Consistent Performance and Market Recognition
The company has delivered positive results for three consecutive quarters, reinforcing its consistent earnings momentum. Over the past three years, Polycab India has outperformed the BSE500 index annually, further establishing its track record of steady returns.
MarketsMojo assigns Polycab India a Mojo Score of 71.0 and a Mojo Grade of Buy, upgraded from Hold on 21 July 2025. The company ranks among the top 1% of all 4,000 stocks rated by MarketsMojo, reflecting its high-quality fundamentals and market standing.
Curious about Polycab India Ltd from Cables - Electricals? Get the complete picture with our detailed research report covering fundamentals, technicals, peer analysis, and everything you need to decide!
- - Detailed research coverage
- - Technical + fundamental view
- - Decision-ready insights
Valuation and Shareholding Considerations
Despite its strong fundamentals and market leadership, Polycab India trades at a premium valuation. The company’s Price to Book Value stands at 11.1, reflecting a very expensive valuation relative to peers. Its Price/Earnings to Growth (PEG) ratio is 1.3, indicating that the stock’s price growth is somewhat aligned with its earnings growth, which has risen by 37.2% over the past year.
Promoter shareholding has seen a slight decline, with promoters reducing their stake by 1.49% in the previous quarter to 61.52%. While this may be noted by market participants, it does not detract from the company’s overall market position and financial metrics.
Summary of Key Metrics
Polycab India’s market cap of Rs. 1,17,071 crore makes it the largest entity in the Cables - Electricals sector. Its annual sales of Rs. 24,595.05 crore represent over a quarter of the industry’s total revenue. The stock’s recent price action, combined with strong financial performance and sector dominance, has culminated in the new 52-week high of Rs. 7,916.5.
With the Sensex trading near its own highs and the stock outperforming both the sector and benchmark indices, Polycab India’s milestone reflects a blend of solid fundamentals and positive market sentiment.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
