A micro-cap inventory concerned within the manufacturing and exports of electrical wires and cables surged by over 3 p.c following the announcement of securing a Rs.9.70 crore order from Adani Electrical energy. The order is for the provision of LT PVC cables, which is predicted to spice up the corporate’s income and strengthen its market place.
Worth Motion
Throughout Wednesday’s buying and selling session, Ultracab (India) Ltd shares hit an intra-day excessive of Rs.11.35 per share, marking a 3.2 p.c improve from the earlier shut of Rs.10.99 every. The share has since retreated and closed at Rs.10.49 per share.
Contract Particulars
Ultracab India Restricted is happy to announce that it has secured a big charge contract from Adani Electrical energy Mumbai Restricted for the provision of LT PVC cables in numerous sizes. This noteworthy order highlights the corporate’s robust market presence and the arrogance positioned in its high-quality merchandise.
The corporate is optimistic that this contract will positively influence its income and profitability, with supply anticipated to be accomplished by March 2026. The overall worth of the order is Rs.9.70 crore.
Product Vary
The corporate gives a various vary of over 6,000 merchandise, together with home home wires, industrial PVC/XLPE energy cables, and specialised cables resembling elevator and photo voltaic cables. It operates a cutting-edge manufacturing facility positioned in Shapar, Rajkot, Gujarat. The corporate is acknowledged for its robust dedication to high quality and security requirements, establishing a trusted popularity throughout a number of industries.
Main Orders and Initiatives
Ultracab has secured a big order value Rs.47.78 crores from Sterling & Wilson Pvt. Ltd. for supplying LT AB cables underneath the RDSS authorities scheme for South Bihar Energy Distribution Co. Ltd., with challenge completion anticipated by March 2025. Moreover, the corporate secured a number of contracts in early 2025, together with orders valued at Rs.51 crores from L&T and Rs.7.17 crores from MSETCL.
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World Presence and Clientele
Ultracab exports its merchandise to 29 international locations, together with the UK, UAE, Africa, Singapore, and Uganda. Its esteemed clientele includes distinguished companies resembling BHEL, NTPC, Reliance, Airtel, and Godrej, in addition to key authorities entities like BPCL and ONGC.
Current Rights Problem
Ultracab launched a rights problem value Rs.49.81 crores, open from January 28 to February 11, 2025, at Rs.14.5 per share. The transfer is geared toward strengthening monetary stability and supporting market growth methods. Promoters Nitesh Vaghasiya and Pankaj Shingala absolutely subscribed to their entitlements, reflecting confidence within the firm’s development trajectory. The funds raised shall be used for mortgage reimbursement, working capital, and different company wants.
Earnings Report
In its newest monetary replace, Ultracab (India) Ltd reported a consolidated income of Rs.57.24 crores for Q3 FY25, marking a 160 p.c improve from Rs.22.05 crores in Q3 FY24. Moreover, web income additionally elevated to Rs.2.70 crores, reflecting a 64 p.c rise in comparison with Rs.1.64 crores throughout the identical interval final 12 months.
Ratio Evaluation
The corporate has a Return on Capital Employed (ROCE) of 16.38 p.c and a Return on Fairness (ROE) of 18.89 p.c. Its Worth-to-Earnings (P/E) ratio stands at 14.67, decrease than the trade common of 33.18. Moreover, the corporate maintains a present ratio of 6.3, a debt-to-equity ratio of 1.27, and an Earnings Per Share (EPS) of Rs.0.75.
Written by – Siddesh S Raskar
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