Dark horse stock of the day: Birla Cable skyrocketed 20% in a day

The shares of Birla Cable Limited experienced a sharp rise today. The stock opened at Rs 198.30, which was 5.6% higher than the previous day’s closing price of Rs 187.85. During the intraday session, the stock surged by 20% with significant trading volume.  

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 10 times in volumes than its normal trading volumes on the BSE. While writing this article, the shares of the company are up by Rs 37.55, which is Rs 225.40 on the BSE. It is currently locked into an upper circuit price limit of 20%. 

The stock’s 52-week highs and lows are recorded at Rs 225.40 and Rs 112.55, respectively. With a market capitalization of just Rs 676.20 Crore, the stock has displayed remarkable performance in recent times, delivering a 43% return in a month and an impressive 124% return in the last two years.   

Furthermore, in the last three years, it has delivered a multibagger return of 345% for its investors.  The stock’s all-time high was Rs 229.40, which was registered in November 2018, and it has reached near about this level again today. It is yet to cross the all-time high levels.   

Financial Performance   

If we examine the company’s financials, in FY23, revenue from operations experienced an increase of 48% YoY, going from Rs 535 crore to Rs 792 crore. The operating profit of the company increased from Rs 43 crore to Rs 64 crore, the operating profit stood flat at 8%.  

Whereas the net profit of the company amounts to Rs 33 crore, the net profit margins stood at 4% in FY23.  

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 18.3% and 16%, respectively. The Book value of the company is Rs 76.7, whereas the Price to book value is 3 times. Furthermore, the price-to-earnings ratio is 20 times.  

Business Overview:   

Birla Cable Limited, an Indian company, specializes in manufacturing and selling various telecommunication cables. Their product range includes telecommunications cables, as well as other types of wires and cables.   

They offer a wide selection of copper and fibre optic cables, such as Central-tube Unarmoured Cable, Multi-tube Single Sheath Unarmoured Cable, Multi-tube Double Sheath Unarmoured Cable, Multi-tube Double Layer Unarmoured Cable, Central-tube Steel Tape Armoured Cable, Multi-tube Single Sheath Armoured Cable, and more.   

Additionally, the company produces speciality cables like Stainless Steel Wire Armoured Tactical Cable, Fibre to Antenna, RG 6-75 OHM COAXIAL CABLE, 4 Pair UTP CAT 5e Cable, 4 Pair FTP CAT 5e Cable, 4 Pair SFTP CAT 5e Cable, among others.    

Moreover, they also provide telecom fibre accessories like Fibre Connector Series-LC, Fibre Connector Series-SC, Fibre Connector Series-FC, and ST, among others.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.