Zee Business Newsbreak Confirmed | Polycab stock nosedives after I-T department raids, closes at this rate

Polycab India Share Price: After Zee Business, in an exclusive report, confirmed income tax searches at more than 50 locations of the company within the country, the stock of Polycab India hit a 20 per cent lower circuit on BSE in early trading on Thursday (January 11, 2024).

Minutes after BSE opened, the Polycab India stock that started the trading session on Thursday at Rs 4421.85 hit a lower circuit of 20 per cent to go down by Rs 982.60 to Rs 3930.55 at 9:58 am.

The stock of Polycab India ended the trading session lower by 21.08 per cent, or Rs 1035.75, at Rs 3877.40.

What Zee Business news says

Income Tax Department initiated search and seizure operations in the case of a group, engaged in the manufacturing of wires and cables and other electrical items on December 22.

Some of the authorized distributors of the group were also covered in the search.

The search action was conducted at more than 50 premises located in Mumbai, Pune, Aurangabad, Nasik, Daman, Halol and Delhi.

In the search operations, it was found that the company made sales of Rs 1,000 crore.

While the sales was not shown in book of accounts, the evidence of Rs 400 crore cash payment to distributor was found.
           
During the course of the search operation, a large number of incriminating evidences in the form of documents and digital data have been found & seized.

These evidences reveal modus-operandi of tax evasion adopted by the group in connivance with some of the authorised distributors.

What Anil Singhvi says about Polycab India shares

Zee Business managing editor Anil Singhvi recommended selling Polycab India shares with a stop loss at Rs 4,900 for targets below Rs 4,800, Rs 4,550 and Rs 4,375.

Preliminary analysis suggests that the flagship company indulged in unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport and sub-contracting expenses, etc for suppression of its taxable income.