Rapid urbanisation and industrial expansion contributed to the country’s electrical cable industry’s exponential rise. According to the report, the India Cable Market is expected to grow at a CAGR of 11.2% during 2022- 2028.
In addition, as the country progresses toward Industry 4.0 and the central government-led PLI programs will increase the production of commercial-grade electrical equipment and high-intensity cables. The wires and cable sector accounts for 40% of India’s electrical industry and will benefit from expansion in the power generating, distribution, and industrial equipment sectors.
Here are three Multibagger cable stocks
Universal Cables Ltd.
Universal Cables Ltd is a significant producer of electrical equipment such as extra high voltage, medium voltage, control and instrumentation cables, and relay panels and many more.
Universal Cables Ltd is a small-cap company with a market capitalization of Rs 1,295 crore. The company’s shares were trading at Rs 375.15 apiece,down 0.60 percent on July 18.
In the past year, the company’s share price increased from Rs 149.60 to current levels, giving multibagger returns of 150%. As a result, if an investor bought 1 lakh firm shares in the previous year, their shares are now worth 2.50 lakhs!
The price-to-earnings ratio of the firm is 11.27, which is lower than the industry P/E of 28.52, indicating that the stock is trading at a lower price, and it has an EPS of 34.05.
Revenue climbed by 21% year on year to 2,201 crore in FY 22-23 from the previous year, while net profit increased by 206% to Rs 49 crore. Its debt-to-equity ratio is 0.44.
Finolex Cables Ltd
With a legacy of 50 years in the cable manufacturing industry,Finolex Cables Limited is the largest manufacturer of electrical and communications cables in India,Finolex is the industry leader in wires, with around 23% market share in the organised space. The firm additionally expanded into the production of Fast-Moving Electrical Goods (FMEG) and home appliances.
Finolex Cables Ltd has a market capitalization of Rs 13,396 crore and is a small-cap company. On July 18, the company’s shares were trading at Rs 876.90 per share, up 1.30 percent.
In the past year, the company’s share price increased from Rs 406.20 to current levels, giving multibagger returns of 113.20%. Therefore, if an investor bought 1 lakh firm shares the previous year, their holdings are now worth 2.13 lakhs!
The firm’s P/E ratio is 26.53, which is lower than the industry P/E of 28.52, suggesting that the company is trading at a lower price, and it has an EPS of 32.97.
Revenue climbed by 19% year on year to 4,481 crore in FY 22-23 from the previous year, while net profit increased by 59% to Rs 434 crore and company zero debt to equity ratio.
Paramount Communications Ltd.
Paramount Communications Ltd, one of India’s leading cable and wire manufacturers, is involved in the production of wires and cables such as power cables, telecom cables, railway cables, and specialised cables.
The Paramount Communications Ltd is a micro-cap company with a market capitalization of Rs 831 crore. The company’s shares were trading at Rs 35.50 apiece,up 1.00 percent on July 18.
The company’s share price climbed from Rs 11.15 to current values during the last year, yielding 216.14% multibagger gains. As a result, if an investor bought 1 lakh firm shares the previous year, the shares are now worth 3.16 lakhs!
The firm’s P/E ratio is 14.46, which is lower than the industry P/E of 28.52, indicating that the company is trading at a lower price, and it has an EPS of 2.40.
Revenue climbed by 37% year on year to 796 crore in FY 22-23 from the previous year, while net profit increased by 487% to Rs 47 crore. Its debt-to-equity ratio is 0.54.
Written by Omkar Chitnis
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