Cords Cable Industries Reports Strong Profit Growth Amid Debt Servicing Challenges

Cords Cable Industries, a microcap player in the cable industry, has recently reported a series of positive financial metrics, showcasing its operational efficiency and growth. The company achieved a remarkable Return on Capital Employed (ROCE) of 16.12% in the first half of the year, reflecting strong management efficiency. Over the past four quarters, Cords Cable has consistently delivered positive results, with a Profit After Tax (PAT) of Rs 5.51 crore, marking a significant growth of 41.65%. Additionally, the Profit Before Tax (PBT) excluding other income for the latest quarter surged by an impressive 1431.58%.
Despite these achievements, the company faces challenges in debt servicing, indicated by a low EBIT to Interest ratio of 1.33. Furthermore, while the stock has generated an impressive return of 82.88% over the past year, its long-term growth appears limited, with net sales increasing at an annual rate of just 10.01% over the last five years. The stock is currently trading at a discount compared to its historical valuations, suggesting a complex market position as it navigates both growth and financial stability.