Stock Under ₹15 jumps over 4% after receiving ₹10 Cr orders from Western Railway and others

A micro-cap stock involved in manufacturing and exports of electric wires and cables surged 4.5 percent after securing orders worth Rs.10.23 crore from Western Railway, and five other companies for the supply of LT XLPE/PVC cables worth Rs.10.23 Crore.

Price Movement

In Friday’s trading session, Ultracab (India) Ltd shares hit an intra-day high of Rs.11.48 per share, marking a 4.4 percent increase from the previous close of Rs.11.00 each and a 10 percent rise from the intraday low of Rs.10.45 apiece.

Contract Details

Ultracab has secured orders worth Rs.10.23 crores from Western Railway, Jain Irrigation Systems Ltd, Jindal Stainless Limited, Jindal Coke Limited, Jindal Ferrous Limited, and GK Energy Marketers Private Limited for the supply of LT XLPE/PVC cables. 

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.

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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.

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 inclined 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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