{"id":16179,"date":"2024-01-21T16:09:03","date_gmt":"2024-01-21T10:39:03","guid":{"rendered":"https:\/\/univest.in\/blogs\/?p=16179"},"modified":"2024-01-21T16:09:03","modified_gmt":"2024-01-21T10:39:03","slug":"polycab-india-shares-fall-on-q3-results","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/polycab-india-shares-fall-on-q3-results\/","title":{"rendered":"Polycab India&#8217;s Shares Continue to Decline Despite Positive Year-On-Year Net Profit Growth"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/polycab-india-shares-fall-on-q3-results\/#Polycab_Indias_shares_have_been_on_a_downward_trajectory_extending_losses_even_further_on_Friday\" title=\"Polycab India&#8217;s shares have been on a downward trajectory, extending losses even further on Friday.\">Polycab India&#8217;s shares have been on a downward trajectory, extending losses even further on Friday.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/polycab-india-shares-fall-on-q3-results\/#Reasons_for_the_fall\" title=\"Reasons for the fall:\">Reasons for the fall:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/polycab-india-shares-fall-on-q3-results\/#What_are_the_thoughts_of_investors\" title=\"What are the thoughts of investors?\">What are the thoughts of investors?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/polycab-india-shares-fall-on-q3-results\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Polycab_Indias_shares_have_been_on_a_downward_trajectory_extending_losses_even_further_on_Friday\"><\/span><strong>Polycab India&#8217;s shares have been on a downward trajectory, extending losses even further on Friday.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>This follows the release of the company&#8217;s Q3 results which failed to meet analyst expectations<\/strong>. Furthermore, the ongoing uncertainty surrounding the income tax raid on the company&#8217;s offices has only added to investors&#8217; concerns. Jefferies brokerage, while still maintaining a &#8220;buy&#8221; rating on the stock, made significant adjustments to its previous target price.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Reasons_for_the_fall\"><\/span><strong>Reasons for the fall:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It was reduced from Rs 7,000 to Rs 5,870 due to <strong>Polycab&#8217;s<\/strong> disappointing <strong>profit margins in the third quarter.<\/strong> The company&#8217;s performance was impacted negatively by lower-than-anticipated exports and increased advertising expenses.<\/p>\n<p>In addition to this, the shadow of the December <strong>income tax raid loomed large over the company,<\/strong> adding further pressure. According to the income tax department, the company allegedly has unaccounted cash sales of around Rs 1,000 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_thoughts_of_investors\"><\/span><strong>What are the thoughts of investors?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Investors remain cautious until a final resolution is reached. However, <a href=\"https:\/\/univest.in\/stocks\/polycab\/polycab-india-ltd-share-price-today\"><strong>Polycab India<\/strong><\/a> has stated that they haven&#8217;t received any official communication regarding the search&#8217;s outcome.<\/p>\n<p>Despite the challenges, <strong>Polycab India<\/strong> reported a year-on-year increase in net profit of 15.3% to Rs 416.51 crore and a 16.8% rise in net sales to Rs 4,340.47 crore for the quarter that ended in December 2023.<\/p>\n<p>However, this fell short of Jefferies&#8217; previous sales growth forecast of 15%. Wires and cables revenue rose by 18%, while the FMEG (fast-moving electrical goods) segment saw a concerning 15% decline attributed to weak consumer demand.<\/p>\n<p>Worryingly, the company&#8217;s EBITDA margin contracted 130 basis points quarter-on-quarter to 13.1%. In their analysis, Jefferies cited other companies from 2023 that experienced similar stock price dips after facing income tax department scrutiny. However, they expressed optimism in <a href=\"https:\/\/univest.in\/blogs\/polycab-share-price-gains-3-after-falling\/\">Polycab&#8217;s<\/a> long-term prospects, hence the &#8216;buy&#8217; rating despite the revised target price.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Polycab India<\/strong> is going through a turbulent time, with both internal operational challenges and external uncertainties impacting its stock price. While <a href=\"https:\/\/en.wikipedia.org\/wiki\/Jefferies_Group\" rel=\"nofollow noopener\" target=\"_blank\">Jefferies<\/a> remains positive about the company&#8217;s potential, investors must carefully consider the risks involved before making any investment decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Polycab India&#8217;s shares have been on a downward trajectory, extending losses even further on Friday. This follows the release of the company&#8217;s Q3 results which failed to meet analyst expectations. Furthermore, the ongoing uncertainty surrounding the income tax raid on the company&#8217;s offices has only added to investors&#8217; concerns. Jefferies brokerage, while still maintaining a<\/p>\n","protected":false},"author":15,"featured_media":26910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[877],"class_list":["post-16179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-polycab-india"],"metadata":{"_last_editor_used_jetpack":["classic-editor"],"_edit_lock":["1705833409:13"],"_edit_last":["13"],"post_views_count":["955"],"_thumbnail_id":["26910"],"rank_math_internal_links_processed":["1"],"rank_math_primary_category":["842"],"rank_math_seo_score":["79"],"rank_math_focus_keyword":["polycab India"],"rank_math_title":["Polycab India's Shares Fall on Disappointing Q3 Results"],"rank_math_description":["Polycab India Ltd will report its December quarter results on Thursday. The cables and wires maker, whose shares fell sharply due to income tax raid.\n"],"rank_math_facebook_title":["Polycab India's Shares Fall on Disappointing Q3 Results"],"rank_math_facebook_description":["Polycab India Ltd will report its December quarter results on Thursday. The cables and wires maker, whose shares fell sharply due to income tax raid.\n"],"rank_math_analytic_object_id":["469"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2024\/10\/18181926\/portfolio-2-2.jpg","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/16179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=16179"}],"version-history":[{"count":3,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/16179\/revisions"}],"predecessor-version":[{"id":16183,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/16179\/revisions\/16183"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/26910"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=16179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=16179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=16179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}