Polycab India bounces after 10-day fall

Polycab India gained 2.86% to Rs 854.9, ending its ten-day losing streak.

Shares of Polycab India lost 9.49% in the past ten trading sessions to settle at Rs 831.10 on Wednesday (9 September) from its previous closing high of Rs 918.20 on 26 August 2020.

The counter is up nearly 50% from its 52-week low of Rs 571.70 hit on 25 March 2020. It is 38% away from its 52-week high of Rs 1180 hit on 24 February 2020.

On the technical front, the stock's RSI (relative strength index) stood at 45.283. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading in between its 100 days and 200 days simple moving average placed at 788.91 and 869.16 respectively. These levels will act as crucial resistance and support zones in near term.

Polycab posted a 12.57% fall in consolidated net profit to Rs 117.60 crore on a 49.95% drop in net sales to Rs 976.60 crore in Q1 June 2020 over Q1 June 2019. Polycab India's wires and cables business declined 51% to Rs. 793.5 crore in Q1 June 2020 from Rs 1610.4 crore in Q1 June 2019 hurt by lockdown but partly supported by wires and exports. FMEG business declined 43% year on year to Rs 137.8 crore in Q1 June 2020 from Rs 240.1 crore in Q1 June 2019. While lighting and agro pumps business witnessed better traction, fans business was impacted as April and May are typically key pre-summer stocking periods.

Polycab India is a leading electricals brand. The company is the largest manufacturer of wires and cables in India and a fast-growing player in the FMEG space. It manufactures and sells various types of cables, wires, electric fans, LED lighting and luminaires, switches and switchgears, solar products, pumps and conduits and accessories

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