Ultracab (India) Reports Strong Sales Growth Amid Ongoing Market Underperformance

Ultracab (India), a microcap player in the electrical cables industry, has recently undergone an adjustment in its evaluation. The company reported very positive financial performance for the quarter ending March 2025, highlighted by a significant growth in net sales of 63.71%, reaching a record high of Rs 72.95 crore. Additionally, the profit after tax (PAT) for the latest six months stood at Rs 5.11 crore, reflecting a growth rate of 47.23%.
Despite these positive indicators, Ultracab (India) has faced challenges in its market performance. Over the past three years, the stock has consistently underperformed against the benchmark, with a return of -29.48% in the last year alone. This trend has raised concerns, particularly as the company has underperformed the BSE500 index in each of the last three annual periods.

The company's return on capital employed (ROCE) is reported at 16.7, indicating an attractive valuation with an enterprise value to capital employed ratio of 1.9. Furthermore, while the stock has seen a decline in returns, its profits have increased by 62.1%, and the PEG ratio stands at 0.5, suggesting a potential valuation discrepancy compared to its peers.

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