Polycab slips 5% after promoters likely sell 2% stake via block deal

Shares of Polycab India dropped 5.3 per cent at Rs 6,616 on the NSE in Friday’s intraday deals. The stock is trading near its 52-week high of Rs 7,330 per share reached on June 25, 2024. The company had hit a 52-week low of Rsd 3,492 on July 07, 2023. 

The recent drop in the stock price followed a block deal on the National Stock Exchange (NSE), where approximately 3.37 million shares of the company, valued at Rs 2,265.44 crore, were traded at a price of Rs 6,709.35 per share.

According to reports, the promoter group and family members of Polycab India are the likely sellers, offloading 2.04 percent stake in the company. According to exchange filings, the promoter group of Polycab India currently holds 65.24 percent of the company.

Polycab India Ltd specialises in manufacturing and selling wires, cables, and fast-moving electrical goods.

Polycab India reported a 28.5 per cent increase in its fourth-quarter profit, driven by robust demand for its wires and cables, its largest segment.  The consolidated net profit surged to Rs 546 crore ($65.4 million) for the quarter ending March 31, up from Rs 425 crore a year ago. 

Revenue also saw a significant rise of 29 per cent to Rs 5,592 crore, driven primarily by a 19.3 per cent growth in its core wires and cables segment, which constitutes approximately 88 per cent of the company's product mix.

At 12:58 PM; the stock of the company pared some of its gains and was trading 3.07 per cent higher at Rs 6,774.45 per share on the NSE. In comparison, the NSE Nifty50 was trading 0.07 per cent lower at 24,027 levels.