Cable stock jumps 17% after securing ₹51 Cr order from Maharashtra Govt

During Wednesday’s trading session, the shares of one of the leading manufacturers and exporters of electric wires and cables in India surged nearly 17 percent, upon receiving an order worth Rs. 51 crores from Maharashtra State Electricity Distribution Company Limited (MSEDCL).

Stock Performance

With a market cap of Rs. 213.6 crores, at 10:21 a.m., the shares of Ultracab (India) Limited were trading in the green at Rs. 16.46, up by nearly 10 percent, compared to its previous closing price of Rs. 14.99.

The stock delivered negative returns of nearly 9 percent in one year, as well as around 1.5 percent returns in the last one month. 

What’s the news

Ultracab (India) Limited has secured an order valued at Rs. 51.06 crores from Maharashtra State Electricity Distribution Company Limited (MSEDCL), as per the latest regulatory filings with the BSE. 

The order is for the supply of LT XLPE cables in various sizes, with the delivery set to be completed by June 2025.

MSEDCL, one of India’s largest power distribution companies, serves over 2.7 crore consumers across Maharashtra and parts of Mumbai. It provides electricity throughout the state and is recognized for its large consumer base and extensive electricity distribution network.

Previous Order

3rd January 2025: Ultracab entered into an annual rate contract with Maharashtra State Electricity Transmission Company Limited (MSETCL) worth nearly Rs. 7.17 crore. The contract is for supplying 1.1 KV PVC FRLS control cables to various EHV PCC O&M zones of MSETCL.

MSETCL is responsible for transmitting electricity from generation points to distribution points and operates the majority of Maharashtra’s electricity transmission system. The company manages a transmission network of 51,518 circuit kilometres and 742 EHV substations, with a transformation capacity of 138,598 MVA.

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Financials

Ultracab experienced significant growth in its revenue from operations, showing a year-on-year increase of around 159.6 percent from Rs. 22.05 crores in Q3 FY24 to Rs. 57.24 crores in Q3 FY25.

Similarly, its net profit increased during the same period from Rs. 1.64 crores to Rs. 2.7 crores, indicating an impressive growth of nearly 64.6 percent YoY.

Key Financial Ratios

In terms of key financial metrics, Ultracab has a Return on Equity (RoE) of 17.3 percent and a return on capital employed (RoCE) of 15.9 percent. Additionally, the company’s debt-to-equity ratio stands at 1.27.

About the company

Ultracab (India) Limited is primarily engaged in the business of manufacturing and exporting of electric wires and cables.  

The company has established a strong presence in this sector, boasting a prestigious client list that includes major corporate buyers such as the TATA Group, Adani Group, Jindal Group, and Vedanta Group. 

Ultracab also serves various departments of Indian Railways and other prominent PSUs, including EIL, PGCIL, Railways, SAIL, BPCL, MRPL, NPCIL, BHEL, and many more.

Written by Shivani Singh

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