Universal Cables Limited (UCL) stock opened its trading hour today at Rs 354.70 and is currently trading at a price of Rs 373.90. The stock touched an intra-day high at Rs 388 which also marks to be its 52-week high figure. In a span of six months, the stock has been able to deliver returns of around 80 percent to its stakeholders.
Moving further ahead with a span of one year, the stock has given multibagger returns of around 152 percent to its stakeholders which basically means that if someone would have invested Rs 1,00,000 in the stock then, within one year, the holdings would have converted to a value of Rs 2,52,000.
Universal Cables Limited is one of the most reputed players in the power cable segment and is included in the list of the largest cable manufacturing companies in the country. It is a leader in the Indian Cable Industry with a wide product range.
The cable division includes Low Voltage, Medium Voltage, and Extra High Voltage XLPE Power Cables up to 500 kV grade, PVC and Rubber Insulated Power Cables up to 11 kV grade, etc. Its Cables and Capacitors are known by the Brand Name “UNISTAR”.
Apart from the operations of manufacturing Electrical Cables for multifarious applications, the company is also having a full-fledged EPC Division to execute Turnkey Contracts for various Utilities/Projects.
Having a quick look at the financials of the company, it can be seen that the revenues and net profits have moved in opposite directions. Revenues moved up from Rs 514.28 crores in Q2 to Rs 590.99 crores in Q3. On a contrasting note, the net profits of the company moved down from Rs 19.58 crores in Q2 to Rs 11.21 crores in Q3.
The profitability parameters of the company have witnessed an upside movement on a YoY basis. ROCE shifted from 4.64 percent in FY20-21 to 6.32 percent in FY 21-22. The ROE figures have seen a transition from negative returns of 0.68
percent in FY20-21 to positive returns of 1.37 percent in FY 21-22.
Promoters of the company hold a 61.89 percent stake in the company and the same has been constant over the past five quarters. FIIs have increased their stake from 0.11 percent in Q2 to 0.35 percent in Q3.
Written by Amit Madnani
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