This fundamentally strong stock is turning out favourite among the traders! Know why

This midcap stock has surged 25% in last 3 months and has outperformed the broader market.

Indian stock market has witnessed a roller coaster journey for almost a year now, and stock specific approach has been adapted by many investors and traders. Strong growth midcap and Smallcap stocks are being focusses on this Diwali, and strong buying sentiment in seen across such good quality stocks. Meanwhile, one such company that has attracted investors is Polycab India, which is India’s leading manufacturer of cables, wires, and allied products. The company’s market share comprises over 18 per cent. It has a strong network of over 3,500 dealers & distributors with a reach of over 1,25,000 retail outlets.

From the fundamentals point of view, the company recorded net sales and other operating income of Rs 3,332.36 crore in Q2FY23, higher by 10.84% than Rs 3,006.56 crore reported in Q2FY22. Q2FY23 recorded a net profit of Rs 271.26 crore in comparison with a net profit of Rs 200.83 crore in Q2FY22, giving a decent rise of 35.07%.

Interestingly, the stock has delivered over 25% returns in the past 3 months and has outperformed the broader market. Technically, the stock has broken out of a 27-week Stage-1 cup & handle pattern with a massive volume. It has been consolidating in a range for the past 52 weeks. Besides, it is trading above all key moving averages and above all resistances. The 14-period daily RSI entered a strong bullish zone while the MACD shows a strong bullish momentum. The KST indicator is also in a strong bullish set-up. The RRG RS and momentum are above the zone of 100, showing outperformance compared to the broader market. The Elder Impulse System has formed a series of strong bullish bars. In short, the stock has registered a bullish breakout.

Considering its strong marketing and product innovations, along with customer centric approach, the company expects strong growth in future. Long term growth investors can surely keep an eye on this stock!