Polycab India experienced a dip of over 5% in its share value during intra-day trading on Friday, triggered by Income Tax Department raids at nearly 50 locations associated with the company across the country. The investigation wing of the Income Tax Department conducted searches at residences and offices linked to the top management of the cables and wire manufacturer. The specific reasons behind the searches and the nature of the investigation remain undisclosed, prompting the Bombay Stock Exchange to seek clarification from the company.
The stock marked a 5.2% decline, reaching its day’s low at ₹5,326.
Despite this setback, Polycab India has exhibited notable growth, with a surge of 109% over the past year and 113% in 2023. Over a three-year period, the shares of this wire and cable manufacturer have delivered substantial returns, showing a growth of 449%.
Reaching its record high of ₹5,733 on December 12, the stock has soared over 129% from its 52-week low of ₹2,500.25 recorded on December 26, 2022.
In the September quarter, Polycab reported a 59% rise in profit, reaching ₹426 crore compared to ₹268 crore in the same quarter of the previous year. The revenue for Q2 FY24 witnessed a growth of 26.5%, amounting to ₹4,218 crore against ₹3,332 crore in the September 2022 quarter. The company attributed the improvement in EBITDA, which surged by 43% on-year to ₹608.9 crore, and the 160 bps YoY increase in EBITDA margin to 14.4%, to a favorable product mix and better operating leverage.
Polycab India is involved in the manufacturing and sale of cables & wires (C&W), as well as fast-moving electric goods (FMEG) products. Additionally, it undertakes limited engineering, procurement, and construction projects, with 25 manufacturing facilities spread across Gujarat, Maharashtra, Uttarakhand, Tamil Nadu, and Daman.
