Polycab India Shares Slump Over 4% Amidst Reports Of Tax Raids At 50 Office Premises Across Country

The share price of multi-bagger consumer durables stock Polycab India Ltd plunged 4.75% at Rs 5353.50 per share at 2:00 pm on Friday amidst a spurt in volume after reports emerged that the Income Tax department conducted searches at nearly 50 locations linked to the company across the country on Friday.

The BSE Exchange has sought clarification from Polycab India Ltd on December 22, 2023, with reference to the news that appeared in a media portal dated December 22, 2023, quoting "Tax raids at 50 locations linked to Polycab India in Mumbai." The company's response is awaited.

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According to media Reports, residences and offices of topmanagement linked with the cables and wire maker were also being raided. The specific reasons behind the Income Tax Department's searches and the nature of the investigation are still not known.

Polycab India Stock Price Performance:

The share price of Polycab India touched a record high of Rs 5,722.90 on December 14. In this year so far the company's shares have gained 108.84%. In the last one year, Polycab India stock price has increased 105.82%. The last two years and last three year's returns from the stock have increased 129.05%, and 439.28% respectively. In the last six months, Polycab India shares have jumped 54.56% higher.

Financial performance of Polycab India:

In the quarter ending September 30, 2023, the cable and wire manufacturer posted a 59% jump in profit at Rs 426 crore. Meanwhile, the company's revenue rose 26.5% to Rs 4218 crore in the second quarter compared to Rs 3332 crore in the September 2022 quarter. Polycab's EBITDA in Q2 FY24 increased 43% on-year to Rs 608.9 crore, and the EBITDA margin improved 160 basis points YoY to 14.4%.

About Polycab India Ltd:

Polycab is engaged in the business of manufacturing and selling wires and cables and fast-moving electrical goods 'FMEG' under the 'POLYCAB' brand. Apart from wires and cables, the company manufactures and sells FMEG products such as electric fans, LED lighting and luminaires, switches and switchgear, solar products, and conduits & accessories.

The company was incorporated as 'Polycab Wires Private Limited' on January 10, 1996, in Mumbai as a private limited company under the Companies Act, 1956.

Polycab India is involved in the sale and manufacturing of a diverse range of wires and cables and our key products in the wires and cables segment are power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, flexible/single multi-core cables, communication cables and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signaling cables, specialty cables, and green wires.