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Check Before You Invest : Relicab Cable Manufacturing Ltd

BSE: 539760 NSE: ISIN: INE773T01014
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Cable

Snapshot

Q.1 Which industry/sub-sector does Relicab Cable Manufacturing Ltd belong to?
Relicab Cable Manufacturing Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Cable segment.
Q.2 Is Relicab Cable Manufacturing Ltd a good quality company?
Relicab Cable Manufacturing Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Relicab Cable Manufacturing Ltd undervalued or overvalued?
Relicab Cable Manufacturing Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 24.17 59.89
Price to Book 2.48 5.24
Price to Sales 0.67 1.99
EV to EBITDA 9.42 25.28
Q.4 Is Relicab Cable Manufacturing Ltd a good buy now?
Relicab Cable Manufacturing Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd revenue growth is 5.3% for FY-2025, which is below its 5-year CAGR of 26.53%, indicating slower growth.

Q.2 Gross Profit margin of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.6% for FY-2025, which is above its 5-year median of 4.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.58% for FY-2025, which is above its 5-year median of 9.16% indicating increasing margins.

Q.4 Net Profit Margin of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Net Profit Margin is 4.29% for FY-2025, is above its 5-year median of 4.08%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.6 4.6
Operating Profit Margin (%) 10.58 9.16
Net Profit Margin (%) 4.29 4.08

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Return on Asset is 4.84%, which is above its 5-year historical median of 4.29%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Return on capital employed is 20.34% for FY-2025, which is above its 5-year historical median of 16.89%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Return on equity is 13.43% for FY-2025, which is in line with its 5-year historical median of 13.43%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Cash conversion cycle is 135 days, above its 5-year historical median of 112 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.13 1.09
ROE (%) 13.43 13.43
ROCE (%) 20.34 16.89
Cash Conversion Cycle 135 days 112 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Debt-to-Equity ratio is 0.78, which is above the industry average of 0.52, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Relicab Cable Manufacturing Ltd?
Relicab Cable Manufacturing Ltd Debt to cash flow from operations is 3.6, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Relicab Cable Manufacturing Ltd?

Q.1 Promoter shareholding and pledge status of Relicab Cable Manufacturing Ltd?
Promoters hold 27.95% of the Relicab Cable Manufacturing Ltd, with 99.94% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Relicab Cable Manufacturing Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Relicab Cable Manufacturing Ltd vs industry peers?
Relicab Cable Manufacturing Ltd revenue CAGR is 26.53%, compared to the industry median CAGR of 4.57%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 5.3 4.6
Gross Profit Growth (%) 33.9 21.7
Operating Profit Growth (%) 2.2 18.6
Net Profit Growth (%) 11 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.13 1.18
ROE (%) 13.43 9.33
ROCE (%) 20.34 13.25
Cash Conversion Cycle (days) 135.03 90

Valuation & price assessment

Q.1 Stock return of Relicab Cable Manufacturing Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
11.4% 7.2% -17.8% -51.7%
Q.2 Valuation ratios of Relicab Cable Manufacturing Ltd vs historical?
The current P/E ratio of 24.17 is lower than its historical median of 59.89, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 24.17 59.89 28.85
Price to Book 2.48 5.24 2.59
Price to Sales 0.67 1.99 1.29
EV to EBITDA 9.42 25.28 12.65

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