Income-tax findings on an “unnamed” company perceived to be Polycab Industries and the company’s clarification failed to convince analysts. The Polycab stock corrected 21 per cent to ₹3,905 on Thursday because of a Ministry of Finance release suggesting tax evasion by the group. While retaining the “Add” rating on the stock, Axis Capital cut the target price to ₹4,300 from its previous target of ₹5,809. According to Anil R, Research analyst, Geojit Financial Services, the ongoing ₹1,000 crore tax evasion case involving Polycab awaits further clarity. Preliminary analysis suggests unaccounted cash sales, cash payments for unaccounted purchases, non-genuine transport, and subcontracting expenses to suppress taxable income.

Source: The Hindu January 12, 2024 11:21 UTC