Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Relicab Cable Manufacturing Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is based on a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical indicators. While the rating was revised on 29 December 2025, the following analysis uses the latest available data as of 09 February 2026 to provide a clear understanding of the stock’s present fundamentals and market behaviour.
Quality Assessment: Below Average Fundamentals
As of 09 February 2026, Relicab Cable Manufacturing Ltd’s quality grade remains below average. The company has demonstrated a modest compound annual growth rate (CAGR) of 13.52% in operating profits over the past five years, which reflects some growth but is not robust enough to inspire strong confidence. Additionally, the firm’s ability to service its debt is weak, with an average EBIT to interest ratio of just 1.47. This low coverage ratio signals potential vulnerability in meeting interest obligations, which can be a concern for creditors and investors alike.
Valuation: Very Attractive but Risky
Despite the quality concerns, the stock’s valuation grade is currently rated as very attractive. This suggests that Relicab Cable Manufacturing Ltd is trading at a price level that could offer value relative to its earnings and asset base. For value-oriented investors, this may present an opportunity to acquire shares at a discount. However, the attractive valuation must be weighed against the company’s fundamental weaknesses and market risks, including the high level of promoter share pledging.
Financial Trend: Positive but Fragile
The financial grade for the company is positive, indicating some favourable trends in recent financial performance. However, this positivity is tempered by the stock’s significant underperformance against benchmarks. As of 09 February 2026, the stock has delivered a negative return of 52.38% over the past year and has consistently lagged behind the BSE500 index in each of the last three annual periods. This persistent underperformance highlights challenges in translating financial improvements into shareholder value.
Technical Analysis: Mildly Bearish Outlook
From a technical perspective, the stock is rated mildly bearish. Recent price movements show volatility and downward pressure, with a one-day decline of 3.73% and a one-month drop of nearly 15%. The six-month performance is particularly weak, with a 46.67% loss, signalling that market sentiment remains cautious. Technical indicators suggest that the stock may continue to face resistance in the near term, reinforcing the 'Sell' rating.
Additional Market Risks
One notable risk factor is the extremely high level of promoter share pledging, with 99.94% of promoter shares pledged as of the current date. This situation can exert additional downward pressure on the stock price, especially in falling markets, as pledged shares may be sold off to meet margin calls. Investors should be mindful of this structural risk when considering the stock’s outlook.
Stock Returns and Market Performance
As of 09 February 2026, the stock’s returns paint a challenging picture. The year-to-date return stands at -17.53%, while the one-year return is a steep -52.38%. Shorter-term returns also reflect volatility, with a one-week gain of 7.79% offset by a one-month loss of 14.98% and a three-month decline of 28.07%. These figures underscore the stock’s recent struggles and the difficulty in regaining investor confidence.
Summary for Investors
In summary, Relicab Cable Manufacturing Ltd’s 'Sell' rating by MarketsMOJO reflects a combination of below-average quality metrics, attractive valuation, positive yet fragile financial trends, and a mildly bearish technical outlook. The stock’s significant underperformance relative to benchmarks and the high promoter share pledging add layers of risk that investors should carefully consider. While the valuation may tempt value investors, the overall risk profile suggests prudence and a cautious approach.
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What This Means for Investors Going Forward
Investors should interpret the 'Sell' rating as a signal to exercise caution with Relicab Cable Manufacturing Ltd. The current fundamentals suggest that the company faces structural challenges that may limit near-term upside potential. The very attractive valuation could be a double-edged sword, reflecting market concerns as much as opportunity. Those holding the stock might consider reassessing their positions in light of the weak debt servicing ability and the risks posed by pledged promoter shares.
For prospective investors, the mildly bearish technical outlook and recent negative returns indicate that timing entry into this stock requires careful consideration. Monitoring upcoming quarterly results and any changes in promoter share pledging will be critical to reassessing the stock’s outlook in the coming months.
Context Within the Sector and Market
Relicab Cable Manufacturing Ltd operates within the Other Electrical Equipment sector, a segment that has seen mixed performance amid broader market volatility. Compared to the BSE500 benchmark, the stock’s consistent underperformance over the last three years highlights the need for investors to weigh sector dynamics alongside company-specific factors. While the sector may offer growth opportunities, Relicab’s current financial and technical profile suggests it is not positioned to capitalise effectively at this time.
Conclusion
In conclusion, the 'Sell' rating assigned to Relicab Cable Manufacturing Ltd by MarketsMOJO as of 29 December 2025 remains justified when considering the latest data as of 09 February 2026. The company’s below-average quality, attractive valuation, positive yet fragile financial trend, and mildly bearish technical signals collectively support a cautious investment stance. Investors should remain vigilant and consider these factors carefully before making any decisions regarding this stock.
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