Polycab India stock jumps over 2%, hits fresh 52-week high; firm issues comfort letter for enhanced borrowing

Polycab India issues comfort letter to HDFC Bank for borrowing facility for its subsidiary

Polycab India  stock jumped over 2 percent in early trade on August 23, hitting a fresh 52-week high of Rs 5,145 on NSE. The company has issued comfort letter to HDFC Bank for enhanced borrowing facility for its subsidiary Tirupati Reels Pvt Ltd.

The electrical equipment maker's subsidiary will use the enhanced borrowing facility -- up from Rs 52 crore to Rs 89.97 crore -- funds for working capital and capex expenditure to meet its business requirement for manufacturing business.

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• YES Securities gave a ‘neutral’ rating on Polycab India with a target price of Rs 4,505 in its research report on July 19.
• Religare Retail Research has given a ‘hold’ rating on Polycab India with a target price of Rs 4,612 in a recent research report.

Promoters hold 65.99 percent in the company. Public, DIIs and FIIs hold the remaining 14.61 percent, 9.75 percent and 9.65 percent stake in Polycab India, respectively.

The Polycab India stock has given a return of 63.05 percent over the last six months and has outperformed the benchmark Nifty50 index which has gained 10.77 percent over the same duration.