Stock Performance and Market Context
On 1 December 2025, Relicab Cable Manufacturing's shares touched an intraday low of Rs.43.6, representing a 4.39% decline for the day. This movement resulted in the stock underperforming its sector by 3.29%. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex opened higher at 86,065.92 points, gaining 359.25 points or 0.42%, and was trading at 85,861.27 points at the time of reporting, a marginal 0.18% increase. The Sensex remains close to its 52-week high of 86,055.86, just 0.23% away, and has recorded a 1.54% gain over the past three weeks. Additionally, the Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market environment. Small-cap stocks are leading the market rally, with the BSE Small Cap index gaining 0.4% on the day.
Despite these positive market indicators, Relicab Cable Manufacturing's stock has experienced a 59.50% decline over the past year, a stark contrast to the Sensex's 7.61% gain during the same period. The stock's 52-week high was Rs.112.8, underscoring the extent of the recent price contraction.
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Financial Metrics and Long-Term Trends
Relicab Cable Manufacturing operates within the Other Electrical Equipment industry and sector. The company’s long-term financial indicators reveal a compound annual growth rate (CAGR) of 13.52% in operating profits over the last five years. While this growth rate reflects some expansion, it is considered modest within the sector context.
The company’s ability to service its debt is constrained, as indicated by an average EBIT to interest ratio of 1.47. This ratio suggests limited coverage of interest expenses by earnings before interest and tax, which may contribute to financial strain.
Promoter shareholding is a notable factor, with 99.94% of promoter shares pledged. High levels of pledged shares can exert additional pressure on stock prices, especially during market downturns, as forced selling or margin calls may occur.
Performance comparisons further highlight challenges. Over the last three years, one year, and three months, Relicab Cable Manufacturing has underperformed the BSE500 index. The stock’s negative returns over the past year stand at 59.50%, while profits have declined by 37.7% during the same period.
Recent Quarterly Results and Valuation
The company reported net sales of Rs.13.65 crores in the most recent quarter, reflecting a growth rate of 22.75%. This increase in sales contrasts with the decline in profits, suggesting margin pressures or rising costs may be impacting earnings.
Return on capital employed (ROCE) stands at 14.9%, which is considered attractive relative to peers. The enterprise value to capital employed ratio is 2.4, indicating the stock is trading at a discount compared to historical valuations within the sector.
Despite the subdued stock price performance, these valuation metrics suggest the company is priced lower than its peers on certain financial measures.
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Summary of Key Factors Affecting the Stock
The stock’s decline to Rs.43.6, its lowest level in 52 weeks, reflects a combination of subdued profit trends, high promoter share pledging, and weaker debt servicing capacity. While net sales growth and valuation metrics provide some counterbalance, the overall performance over the past year and longer term has lagged behind broader market indices and sector benchmarks.
Relicab Cable Manufacturing’s share price movement contrasts with the broader market’s upward trajectory, where indices such as the Sensex have maintained gains and remain near record highs. The stock’s position below all major moving averages further underscores the current downward trend.
Investors and market participants will continue to monitor the company’s financial disclosures and market developments as the stock navigates this low price territory.
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