Birla Cable Ltd Stock Falls to 52-Week Low of Rs.122.3

Stock Price Movement and Market Context

On 27 Jan 2026, Birla Cable Ltd’s share price touched an intraday low of Rs.122.3, representing a 3.17% decline on the day and a 1.82% drop compared to the previous close. This decline followed two consecutive days of gains, signalling a reversal in short-term momentum. The stock underperformed its sector by 0.81% on the same day, indicating relative weakness within the Telecom - Equipment & Accessories industry.

Notably, Birla Cable is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a sustained bearish trend. This technical positioning suggests that the stock has struggled to regain upward momentum over multiple time horizons.

In contrast, the broader market showed resilience on the same day. The Sensex, after opening 100.91 points lower, rebounded to close 371.42 points higher at 81,808.21, a gain of 0.33%. Mega-cap stocks led this recovery, while the S&P Bse Metal index reached a new 52-week high. Despite this positive market backdrop, Birla Cable’s performance remained subdued.

Long-Term Performance and Valuation Metrics

Over the past year, Birla Cable Ltd has delivered a negative return of 31.11%, significantly underperforming the Sensex, which gained 8.61% during the same period. The stock’s 52-week high was Rs.215, highlighting the extent of the decline from its peak.

From a valuation perspective, the company exhibits a very attractive enterprise value to capital employed ratio of 1.3, suggesting that the stock is trading at a discount relative to its capital base. However, this valuation is tempered by underlying fundamental weaknesses.

Fundamental Challenges and Financial Indicators

Birla Cable Ltd’s fundamental profile has deteriorated over recent years. The company has experienced a compound annual growth rate (CAGR) decline of 43.62% in operating profits over the last five years, reflecting sustained pressure on earnings capacity. This weak long-term growth has contributed to the stock’s current valuation challenges.

Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 3.27 times. This elevated leverage ratio indicates that the company faces constraints in comfortably managing its debt obligations from operational earnings.

Profitability metrics also highlight subdued performance. The average return on equity (ROE) stands at 6.63%, signalling limited profitability generated per unit of shareholders’ funds. Additionally, the return on capital employed (ROCE) for the half-year ended September 2025 was recorded at a low 4.79%, further emphasising the company’s constrained capital efficiency.

Quarterly earnings data reveal a PBDIT of Rs.7.23 crores, the lowest in recent periods, while cash and cash equivalents have dwindled to Rs.3.04 crores, marking a low point for liquidity reserves.

Recent Performance Trends and Peer Comparison

Birla Cable’s recent results have been flat, with no significant improvement in profitability or operational metrics. Over the last year, profits have declined by 32.1%, aligning with the negative stock returns. The company has also underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent relative weakness within the broader market context.

Despite these challenges, the stock’s valuation remains below the average historical valuations of its peers, which may reflect market recognition of the company’s current difficulties.

Shareholding and Market Grade

The majority shareholding in Birla Cable Ltd is held by promoters, maintaining concentrated ownership. The company’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell as of 6 Nov 2025, an upgrade from the previous Sell rating. This grading reflects the assessment of the company’s financial health, growth prospects, and market positioning.

Market capitalisation is graded at 4, indicating a micro-cap status within the Telecom - Equipment & Accessories sector.

Summary of Key Metrics

To summarise, Birla Cable Ltd’s key financial and market metrics as of 27 Jan 2026 are:

• New 52-week low price: Rs.122.3


• One-year stock return: -31.11%


• Five-year CAGR in operating profits: -43.62%


• Debt to EBITDA ratio: 3.27 times


• Average ROE: 6.63%


• Half-year ROCE: 4.79%


• Quarterly PBDIT: Rs.7.23 crores


• Cash and cash equivalents (half-year): Rs.3.04 crores


• Mojo Score: 26.0 (Strong Sell)

These figures collectively illustrate the pressures faced by Birla Cable Ltd in maintaining profitability and market valuation amid challenging conditions.

Market Position and Sectoral Context

Within the Telecom - Equipment & Accessories sector, Birla Cable Ltd’s performance contrasts with broader market trends. While the Sensex and certain sector indices have shown resilience and gains, Birla Cable’s stock has continued to decline, reflecting company-specific factors that have weighed on investor sentiment and valuation.

The stock’s trading below all major moving averages further highlights the prevailing negative momentum relative to sector peers and the broader market.

Conclusion

Birla Cable Ltd’s fall to a 52-week low of Rs.122.3 marks a significant point in its recent market journey, underscored by weak long-term growth, subdued profitability, and elevated leverage. Despite a valuation that appears attractive relative to capital employed and peers, the company’s financial metrics and market grading indicate ongoing challenges. The stock’s underperformance relative to the Sensex and sector peers over multiple time frames further emphasises the difficulties faced by the company in reversing its downtrend.

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