Relicab Cable Manufacturing Falls to 52-Week Low of Rs.44.16 Amid Market Pressure

Recent Price Movement and Market Context

On 25 Nov 2025, Relicab Cable Manufacturing’s share price touched Rs.44.16, the lowest level recorded in the past year. This represents a decline of 1.27% on the day and a cumulative loss of 5.28% over the last three trading sessions. The stock’s performance has lagged behind its sector, underperforming the Other Electrical Equipment industry by 0.73% on the same day.

The broader market environment has been mixed. The Sensex opened 108.22 points higher but later retreated by 421.92 points, closing at 84,587.01, down 0.37%. Despite this, the Sensex remains close to its 52-week high of 85,801.70, trading just 1.44% below that peak. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Small-cap stocks have shown relative strength, with the BSE Small Cap index gaining 0.2% on the day.

Technical Indicators and Moving Averages

Relicab Cable Manufacturing’s stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained downward momentum and suggests that the stock has not found short-term support levels to halt the decline. The persistent trading below these averages often signals cautious sentiment among market participants.

Long-Term Performance and Financial Metrics

Over the past year, Relicab Cable Manufacturing’s stock has recorded a return of -58.53%, a stark contrast to the Sensex’s 5.59% gain during the same period. The stock’s 52-week high was Rs.112.80, highlighting the extent of the decline. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months.

Financially, the company has exhibited a compound annual growth rate (CAGR) of 13.52% in operating profits over the last five years. However, the ability to service debt remains a concern, with an average EBIT to interest ratio of 1.47, indicating limited coverage of interest expenses by earnings before interest and tax.

Another notable factor is the high level of promoter share pledging, with 99.94% of promoter shares pledged. In volatile or declining markets, such a high proportion of pledged shares can exert additional downward pressure on the stock price, as forced selling or margin calls may occur.

Profitability and Valuation Considerations

Despite the stock’s price decline, Relicab Cable Manufacturing reported positive quarterly results in September 2025. Net sales for the quarter stood at Rs.13.65 crores, reflecting growth of 22.75%. The company’s return on capital employed (ROCE) is 14.9%, which is considered attractive within its sector. Additionally, the enterprise value to capital employed ratio is 2.5, suggesting the stock is trading at a discount relative to its peers’ historical valuations.

Nevertheless, profits have contracted by 37.7% over the past year, aligning with the downward trend in the stock price. This decline in profitability, combined with the other financial and market factors, has contributed to the subdued performance of the stock.

Summary of Key Concerns

The stock’s recent decline to Rs.44.16 marks a significant low point in its 52-week trading range. The combination of underwhelming returns over the past year, a high level of pledged promoter shares, and limited debt servicing capacity has contributed to the pressure on the stock price. While the company has shown some growth in sales and maintains an attractive ROCE, these factors have not been sufficient to offset the broader negative trends.

Relicab Cable Manufacturing’s position below all major moving averages further underscores the current cautious market sentiment. The stock’s performance relative to the Sensex and its sector peers highlights the challenges faced in regaining momentum.

Market Outlook and Broader Context

The overall market environment remains mixed, with the Sensex showing resilience near its 52-week high despite intraday volatility. Small-cap stocks have demonstrated relative strength, but Relicab Cable Manufacturing’s stock has not mirrored this trend. The divergence between the company’s stock and the broader indices reflects specific company-level factors influencing investor sentiment and price action.

Investors and market watchers will continue to monitor the stock’s movement in relation to its financial metrics and market conditions. The current 52-week low serves as a notable reference point in the stock’s recent trading history.

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