The shares of India’s leading manufacturer and exporter of electric wires and cables gained up to 7.5 percent to Rs 22.90 per share after it received an order from Tata Group company for Rs 8.66 crore.
According to an Ultracab exchange filing, the business has signed an outline agreement worth Rs. 8.66 crore for the manufacturing and supply of Low Tension(LT) Cables to Tata Power Mumbai Distribution region. The contract is to be executed between December 1, 2023 and will be effective until November 30, 2024.
Tata Power Company Limited (The TATA Group of Company) is an Indian electric utility and electricity generation company based in Mumbai, India.
During the year, the company completed project orders of Tata Group, Adani Group, JindalGroup, Vedanta Group, Different departments of Indian Railways, and other PSU companies like NTPC, SAIL, PGCIL, BPCL, MRPL, BSNL, and many more.
Recently, the company received an order from Sterling and Wilson for 47.78 crore for the Supply of Low Tension(LT) Aerial Bunched(AB) Cables for the project under the government scheme of RDSS for South Bihar Power Distribution Company Limited, Nalanda, and Gaya District.
Ultracab India revenues have marginally increased year on year from Rs 31.21 crore in Q2FY23 to Rs 31.23 crore in Q2FY24, while net profit has increased by 7 percent in the same period, from Rs 1.43 crore to Rs 1.53 crore.
Ultracab shares have delivered a return of 31 percent in the last month and 39 percent in the last six months.
In the recent financial year, the company’s net profit margin has increased from 3.69 percent in FY22 to percent in FY23, similarly in the same time frame, The operating margin has risen from 9.56 percent to Rs 10.89 percent.
Ultracab India Ltd manufactures and exports electric wires and cables. The company is specialised in Instrumentation Cables, Elevator Cables, High Temperature Automotive Cables, and UL Approved Cables.
At the time of writing this report, Ultracab India shares were trading at Rs 21.88 per share, up 2.72 percent from the previous close price.
Written by Omkar Chitnis
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