A micro-cap stock involved in the manufacturing and exports of electric wires and cables surged by over 3 percent following the announcement of securing a Rs.9.70 crore order from Adani Electricity. The order is for the supply of LT PVC cables, which is expected to boost the company’s revenue and strengthen its market position.
Price Movement
During Wednesday’s trading session, Ultracab (India) Ltd shares hit an intra-day high of Rs.11.35 per share, marking a 3.2 percent increase from the previous close of Rs.10.99 each. The share has since retreated and closed at Rs.10.49 per share.
Contract Details
Ultracab India Limited is pleased to announce that it has secured a significant rate contract from Adani Electricity Mumbai Limited for the supply of LT PVC cables in various sizes. This noteworthy order highlights the company’s strong market presence and the confidence placed in its high-quality products.
The company is optimistic that this contract will positively impact its revenue and profitability, with delivery expected to be completed by March 2026. The total value of the order is Rs.9.70 crore.
Product Range
The company provides a diverse range of over 6,000 products, including domestic house wires, industrial PVC/XLPE power cables, and specialized cables such as elevator and solar cables. It operates a cutting-edge manufacturing facility located in Shapar, Rajkot, Gujarat. The company is recognized for its strong commitment to quality and safety standards, establishing a trusted reputation across multiple industries.
Major Orders and Projects
Ultracab has secured a significant order worth Rs.47.78 crores from Sterling & Wilson Pvt. Ltd. for supplying LT AB cables under the RDSS government scheme for South Bihar Power Distribution Co. Ltd., with project completion expected by March 2025. Additionally, the company secured multiple contracts in early 2025, including orders valued at Rs.51 crores from L&T and Rs.7.17 crores from MSETCL.
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Global Presence and Clientele
Ultracab exports its products to 29 countries, including the UK, UAE, Africa, Singapore, and Uganda. Its esteemed clientele comprises prominent corporations such as BHEL, NTPC, Reliance, Airtel, and Godrej, as well as key government entities like BPCL and ONGC.
Recent Rights Issue
Ultracab launched a rights issue worth Rs.49.81 crores, open from January 28 to February 11, 2025, at Rs.14.5 per share. The move is aimed at strengthening financial stability and supporting market expansion strategies. Promoters Nitesh Vaghasiya and Pankaj Shingala fully subscribed to their entitlements, reflecting confidence in the company’s growth trajectory. The funds raised will be used for loan repayment, working capital, and other corporate needs.
Earnings Report
In its latest financial update, Ultracab (India) Ltd reported a consolidated revenue of Rs.57.24 crores for Q3 FY25, marking a 160 percent increase from Rs.22.05 crores in Q3 FY24. Additionally, net profits also increased to Rs.2.70 crores, reflecting a 64 percent rise compared to Rs.1.64 crores during the same period last year.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 16.38 percent and a Return on Equity (ROE) of 18.89 percent. Its Price-to-Earnings (P/E) ratio stands at 14.67, lower than the industry average of 33.18. Furthermore, the company maintains a current 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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