Polycab India clears way for extended borrowing by subsidiary; stock jumps 2%

Shares of Polycab India rose nearly 2% in early trading on August 23.
The electrical equipment maker has sent a letter of comfort to HDFC Bank regarding its loan facility upgrade from Rs 52 crore to Rs 89.97 crore for its subsidiary Tirupati Reels. The subsidiary will use working capital and capital expenditure to meet business needs for production activities.
Broker view and target price

YES Securities has assigned a “neutral” rating to Polycab India with a price target of Rs 4,505 in its July 19 research report. Retail Research Religare has a hold rating for Polycab India with a target price of Rs 4,612 in a recent research report.
Ownership model
The promoters hold 65.99% of the company’s shares. Public, DII and FII hold the remaining 14.61%, 9.75% and 9.65% respectively of Polycab India.
Stock market performance

Polycab India stock has delivered a 63.05% return over the past six months and outperforms benchmark Nifty50, which has gained 10.77% over the same period.