Relicab Cable Manufacturing Stock Falls to 52-Week Low of Rs.36.25

Intraday Price Movement and Volatility

On 11 Dec 2025, Relicab Cable Manufacturing’s share price experienced notable fluctuations, touching an intraday high of Rs.43.31, which represented a 3.24% rise from the previous close. However, the stock also recorded an intraday low of Rs.36.25, a drop of 13.59% during the session. This wide price range contributed to an intraday volatility of 8.87%, indicating heightened uncertainty among market participants.

The stock’s decline today followed two consecutive days of gains, signalling a reversal in short-term momentum. Additionally, Relicab Cable’s share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a sustained downward trend over multiple time horizons.

Market Context and Sector Performance

While Relicab Cable Manufacturing’s stock has underperformed, the broader market displayed resilience. The Sensex opened flat but gained 0.22% to trade at 84,576.12 points, remaining within 1.87% of its 52-week high of 86,159.02. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, a technical indicator often associated with positive market sentiment.

Mid-cap stocks led the market advance, with the BSE Mid Cap index rising by 0.38%. In contrast, Relicab Cable Manufacturing, classified within the Other Electrical Equipment sector, lagged behind its peers and the broader market indices.

Long-Term Price Performance and Comparison

Relicab Cable Manufacturing’s stock price has shown a marked decline over the past year, with a total return of -58.45%. This contrasts with the Sensex’s 3.77% return over the same period, highlighting the stock’s relative underperformance. The 52-week high for the stock was Rs.108, indicating a substantial drop from its peak levels.

Over the last three years, the stock has also underperformed the BSE500 index, reflecting challenges in maintaining competitive performance within its sector and the broader market.

Financial Metrics and Company Fundamentals

Relicab Cable Manufacturing’s financial indicators provide insight into some of the pressures facing the company. The compound annual growth rate (CAGR) of operating profits over the past five years stands at 13.52%, which suggests moderate growth but may be considered weak relative to sector peers.

The company’s ability to service its debt is limited, with an average EBIT to interest ratio of 1.47. This ratio indicates that earnings before interest and taxes cover interest expenses by a narrow margin, which could constrain financial flexibility.

Another notable factor is the high level of promoter share pledging, with 99.94% of promoter shares pledged. In 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.

Recent Operational Highlights

Despite the stock’s price challenges, the company reported higher net sales for the nine months ended 25 Sep 2025, amounting to Rs.40.31 crores. This increase in sales suggests some positive momentum in revenue generation.

Return on capital employed (ROCE) is recorded at 14.9%, which is considered attractive and indicates efficient use of capital relative to earnings. Furthermore, the enterprise value to capital employed ratio stands at 2.2, signalling a valuation discount compared to historical averages of peers within the sector.

However, profits have declined by 37.7% over the past year, reflecting pressures on the company’s bottom line despite sales growth.

Summary of Key Concerns

The stock’s fall to Rs.36.25 represents a significant milestone, reflecting a combination of factors including weak long-term fundamental strength, limited debt servicing capacity, and the impact of nearly fully pledged promoter shares. These elements have contributed to sustained underperformance relative to the broader market and sector indices.

Trading below all major moving averages and exhibiting high intraday volatility further emphasises the challenges faced by Relicab Cable Manufacturing in regaining upward momentum.

Conclusion

Relicab Cable Manufacturing’s stock reaching a 52-week low highlights the pressures within the company’s financial and market environment. While certain operational metrics such as net sales growth and ROCE present positive aspects, the overall market assessment remains cautious given the stock’s price trajectory and underlying financial indicators.

Investors and market watchers will continue to monitor the stock’s performance in relation to sector trends and broader market movements.

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