The shares of the Penny stock specializing in the manufacturing and sale of a wide range of wires, cables, and conductors, jumped upto 9 percent upon receiving a work order from a reputed cable industry client to supply assorted conductors.
With a market capitalization of Rs. 87.98 crores on Monday, the shares of Marco Cables & Conductors Limited jumped upto 9.1 percent, making a high of Rs. 50.00 per share compared to its previous closing price of Rs. 45.80 per share.
Marco Cables & Conductors Limited, engaged in the manufacturing and sale of a wide range of wires, cables, and conductors, has received two significant purchase orders from a reputed client in the cable industry.
These orders are for the supply of assorted sizes of conductors and have a combined value of Rs. 14.72 Crores (Rupees Fourteen Crore Seventy-Two Lakhs Fifty-Two Thousand only), inclusive of all taxes. The first purchase order is valued at Rs. 3.94 crores and the second at Rs. 10.78 crores, both to be executed within four months.
Financials & Others
The company’s revenue rose by 23.5 percent from Rs. 51 crore to Rs. 63 crore in H2FY24-25. Meanwhile, the Net Profit stood the same at Rs. 2 crore for both periods.
Marco Cables & Conductors Ltd. has a P/E ratio of 16.47, which is significantly lower than the industry average of 44.29, and a PEG ratio of 0.23, indicating potential undervaluation. The promoter shareholding exceeds 65%, reflecting strong promoter confidence, and the company has achieved an impressive average 3-year net profit growth of 108.52%.
Marco Cables Ltd. is recognized with over 33 years of experience in the power cable industry, is credited with identifying business opportunities that have set the company on a strong growth path. The operations were initially started with the manufacturing of wires using aluminium and copper conductors, as well as XLPE/PVC cables and aerial bunched cables. Over time, the product range was expanded to include AAAC (All Aluminium Alloy Conductor) and ACSR (Aluminium Conductor Steel Reinforced) conductors.
The products have been supplied to major electricity boards and turnkey contractors across India, covering the entire range of voltage and transmission lines up to 1.1 KV, and the manufacturing units are located at Sinnar, Nasik (Maharashtra), with an annual production capacity of 18,000 km in assorted sizes.
The company has a set of marquee clients as follows: Ashoka Buildcon Limited, Bajaj Electricals, Bharat Electricals, BVG India Limited, NCC Limited, GETCO, GVPR Engineers Limited, Larsen & Toubro, and others.
Written by Sridhar J
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