On Tuesday’s early trade, the share price of the largest instrumentation cable producer jumped 15 percent to a 52-week high of Rs 117.90 per share after the company received a CARE A3 rating from CareEdge Ratings for its short and long-term bank facilities.
At 11:36 a.m., Cords Cable Industries Ltd shares were trading at Rs 116.05 a share, up 13.01 percent on Tuesday from the previous close price on the Bombay Stock Exchange. The company has a market capitalization of Rs 145 crore.
As per the company’s exchange filing, CareEdge Rating has assigned/reaffirmed Cords Cable Industries Ltd ratings for Long-term Bank Facilities as CARE BBB of stable outlook, and short-term bank facilities are assigned a rating of CARE A3.
Short-term bank facilities are those with a duration of less than a year. Instruments with this grade are seen to offer a modest degree of safety in terms of paying financial commitments on time.
Long-term rating applies to facilities with a duration of longer than a year. Instruments with this grade are seen to offer a modest level of safety in terms of meeting financial commitments on time. Credit risk is moderate for such securities.
The phrase “stable” outlook refers to the predicted stability (or retention) of credit ratings in the medium term due to the entity’s steady credit risk profile in the medium term.
The share has delivered a return of 79 percent in six months and 93 percent in the last year.
Cords Cable Industries Ltd’s revenue has increased by 9.7 percent yearly, from Rs 123 crore in Q1FY23 to Rs 135 crore in Q1FY24. In the same time frame, the company’s net profit marginally increased from Rs 1.74 crore to Rs 1.85 crore.
The company’s promoters hold a 51.77 percent stake in the company as of recent shareholding pattern and retail investors own 47.54 percent stake.
Cords Cable Inds Ltd is in the business of providing cost-effective and quality solutions for various electrical connectivity requirements. The company is a specialised Control and instrumentation offering a wide range of cable products to multiple industries.
Written by Omkar Chitnis
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