The shares of this cable stock surged by almost 7 percent after the company announced the declaration of bonus shares. In this article, we will declare more about this in detail.
With a market capitalization of Rs 2,113 crores, the shares of Dynamic Cables Ltd are currently trading at Rs 872 per share, down by 20.4 percent from its 52-week high of Rs 1,095 per share. Over the one year, the stock has delivered a return of 56 percent.
About the announcement
The Board has approved an expansion in the company’s authorized share capital, from Rs 25 crore to Rs 50 crore, subject to shareholder and regulatory approvals. Consequently, the company has also recommended the issuance of bonus equity shares, in a ratio of 1:1, by capitalizing securities premium. This means that shareholders will get one fully paid-up equity share of Rs 10 for each existing share held. The record date for determining eligible shareholders will be communicated in due course.
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Financial Highlights
Dynamic Cables reported a consolidated revenue of Rs 1,025 crores in FY25, marking an increase of 33.46 percent from Rs 768 crores in FY24. The company reported a net profit growth of 71 percent to Rs 65 crores in FY25 from Rs 38 crores in FY24.
The stock delivered an ROE and ROCE of 22 percent and 26.36 percent and is currently trading at a P/E of 32.61x as compared to its industry average of 31.72x.
Dynamic Cables produces and provides a variety of cables and conductors for the power and energy industries in India and overseas. Its product offerings include bare and insulated conductors, LV/MV/66KV power cables, aerial bunched and control cables, railway signaling cables, and instrumentation wires. It deals with government and private utilities, EPC contractors, solar schemes, industrial customers, and railways.
Written by Satyajeet Mukherjee
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