Stock Price Movement and Market Context
On 2 December 2025, Relicab Cable Manufacturing’s share price touched an intraday low of Rs.42.5, representing a fall of 2.57% on the day. Despite opening with a gap up of 3.16% at Rs.45, the stock reversed course to close near its low point. This marks the second consecutive day of decline, with the stock losing approximately 6.8% over this period. The day’s trading range saw a high of Rs.45 and a low of Rs.42.5, underscoring volatility within the session.
The stock’s performance lagged behind its sector peers, underperforming the Other Electrical Equipment sector by 2.1% on the day. Furthermore, Relicab Cable is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Meanwhile, the broader market exhibited mixed signals. The Sensex opened 316.39 points lower and was trading at 85,233.58, down 0.48%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 1.09% away, and is positioned above its 50-day and 200-day moving averages, indicating a generally bullish trend for the benchmark index.
Long-Term Performance and Comparative Analysis
Relicab Cable Manufacturing’s one-year performance shows a decline of 60.54%, contrasting sharply with the Sensex’s gain of 6.21% over the same period. The stock’s 52-week high was Rs.112.8, highlighting the extent of the recent price contraction. Over the last three years, the stock has underperformed the BSE500 index across multiple time frames, including the one-year and three-month periods, reflecting persistent challenges in maintaining market value.
Financial Metrics and Debt Servicing Capacity
Examining the company’s financial fundamentals reveals a compound annual growth rate (CAGR) of 13.52% in operating profits over the past five years. However, the company’s ability to service its debt remains constrained, with an average EBIT to interest ratio of 1.47. This ratio indicates limited coverage of interest expenses by earnings before interest and tax, which may contribute to investor caution.
Promoter Shareholding and Market Impact
A notable factor influencing the stock’s price dynamics is the high level of promoter share pledging. Approximately 99.94% of promoter shares are pledged, which can exert additional downward pressure on the stock price, particularly in declining market conditions. This situation often raises concerns about potential forced selling or liquidity constraints linked to promoter holdings.
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Recent Quarterly Results and Valuation Metrics
Relicab Cable Manufacturing reported net sales of Rs.13.65 crores in the most recent quarter, reflecting a growth rate of 22.75%. Despite this increase in sales, the company’s profits over the past year have declined by 37.7%, indicating margin pressures or increased costs impacting the bottom line.
The company’s return on capital employed (ROCE) stands at 14.9%, which is considered attractive within its sector. Additionally, the enterprise value to capital employed ratio is 2.3, suggesting that the stock is trading at a discount relative to its peers’ historical valuations. These valuation metrics provide a nuanced view of the company’s financial standing amid its share price challenges.
Sector and Market Positioning
Operating within the Other Electrical Equipment industry, Relicab Cable Manufacturing faces competition and market dynamics that have influenced its stock performance. The sector itself has experienced varied performance, with some companies maintaining steadier valuations. The stock’s current valuation and financial indicators position it distinctly within this competitive landscape.
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Summary of Key Factors Affecting Stock Performance
The recent fall to a 52-week low of Rs.42.5 for Relicab Cable Manufacturing reflects a combination of factors including sustained underperformance relative to the broader market, trading below all major moving averages, and concerns related to promoter share pledging. While quarterly sales growth was recorded, profit contraction and limited debt servicing capacity have contributed to the cautious market stance.
In addition, the stock’s valuation metrics indicate it is trading at a discount compared to peers, with a relatively attractive ROCE. However, the overall market environment and sector-specific pressures continue to influence the stock’s downward trajectory.
Market Outlook and Broader Indices
Despite the challenges faced by Relicab Cable Manufacturing, the Sensex index remains near its 52-week high and is positioned above key moving averages, signalling resilience in the broader market. This divergence highlights the stock-specific nature of the recent price movements for Relicab Cable within the Other Electrical Equipment sector.
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