Multibagger Stock: Polycab India jumped over 270% in 3 years, rallied 725% in 5 years; should you invest?
Polycab India, a leading manufacturer of electrical wires and cables, has seen its shares grow gradually year after year, rewarding its long-term investors handsomely. The company is a market leader in the cables & wires sector, with a 26% share in the organised market and an 18% share in the overall market. It focuses on in-house manufacturing with a high degree of backward integration and has 25 manufacturing facilities.
Over the past year, the company's shares have surged from ₹3,097 to the current trading value of ₹5,313.85 apiece, marking a substantial gain of 71.6%. However, in January, the stock faced significant selling pressure due to allegations of tax evasion, resulting in a 20% decline within the month. Despite this setback, the stock rebounded sharply in the subsequent months, with gains of 9.50% in February and 6.6% in March.
As of the current month, it has risen by 5%. Also Read: Multibagger Stock: Anand Rathi Wealth soared over 340% in just 9 months Long-term investors have witnessed remarkable returns, with the stock soaring 276% over the past three years and an impressive 725% over the last five years. The exceptional performance can be attributed to several factors, including consistent earnings growth over the years, improvement in the balance sheet resulting in a net cash positive position, improved return ratios compared to historical levels, sustained government emphasis on infrastructure development, and notable progress in the real estate segment.
Considering the current price, the shares are trading at a staggering 887% premium over their IPO price of ₹538 apiece. Since its listing in April 2019, the stock has consistently delivered positive returns annually. Also Read: 24 stocks in Nifty
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