Relicab Cable Manufacturing Falls to 52-Week Low of Rs.42.5 Amid Market Pressure

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 was unable to sustain gains and closed near its lowest point. This marks the stock’s lowest level in the past 52 weeks, a notable milestone given its 52-week high of Rs.112.8.

The stock has been on a downward trend for two consecutive days, delivering a cumulative return of -6.8% over this period. Its performance today also lagged behind the sector by 2.1%, indicating relative weakness within the Other Electrical Equipment segment. 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 pressure on the stock price.

Broader Market Environment

The broader market context provides additional perspective on Relicab Cable’s performance. The Sensex opened lower by 316.39 points and was trading at 85,233.58, down 0.48% on the day. Despite this dip, the Sensex remains close to its 52-week high of 86,159.02, just 1.09% away. The index is currently trading above its 50-day moving average, which itself is positioned above the 200-day moving average, reflecting a generally bullish trend in the broader market.

In contrast, Relicab Cable’s 1-year return stands at -60.54%, significantly underperforming the Sensex’s 6.21% gain over the same period. This divergence highlights the stock’s challenges relative to the broader market and its sector peers.

Financial Performance and Valuation Metrics

Relicab Cable Manufacturing’s financial indicators over recent years provide insight into the stock’s valuation and market standing. The company has recorded a compound annual growth rate (CAGR) of 13.52% in operating profits over the last five years, reflecting moderate growth in earnings before interest and taxes (EBIT).

However, the company’s ability to service its debt appears constrained, with an average EBIT to interest ratio of 1.47. This ratio suggests limited coverage of interest expenses by operating earnings, which may contribute to investor caution.

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 arise.

Profitability and Sales Trends

Despite the stock’s price decline, the company reported positive quarterly sales results in September 2025. Net sales for the quarter stood at Rs.13.65 crores, reflecting growth of 22.75% compared to the previous period. This sales growth contrasts with the stock’s price movement, indicating that revenue expansion has not translated into share price strength.

Return on capital employed (ROCE) is reported at 14.9%, which is considered attractive relative to industry standards. Additionally, the enterprise value to capital employed ratio is 2.3, suggesting the stock is trading at a discount compared to its peers’ historical valuations.

Nonetheless, the company’s profits have declined by 37.7% over the past year, which may have contributed to the negative sentiment surrounding the stock. The combination of falling profits and a significant share price decline underscores the challenges faced by Relicab Cable Manufacturing in recent periods.

Long-Term Performance and Sector Comparison

Over the last three years, Relicab Cable Manufacturing has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This consistent underperformance relative to a broad market benchmark highlights the stock’s challenges in delivering returns comparable to the wider market.

The stock’s sector, Other Electrical Equipment, has seen varied performance, but Relicab Cable’s returns have lagged behind sector averages. The stock’s market capitalisation grade is rated at 4, indicating a mid-cap status within its industry classification.

Given the stock’s current trading below all major moving averages and its recent 52-week low, the market appears to be pricing in ongoing concerns about the company’s financial health and growth prospects.

Summary of Key Price and Performance Data

Relicab Cable Manufacturing’s 52-week low of Rs.42.5 contrasts sharply with its 52-week high of Rs.112.8, reflecting a substantial decline in market valuation. The stock’s recent two-day fall of 6.8% and underperformance relative to its sector by 2.1% today further illustrate the downward pressure it faces.

While the broader Sensex remains near its 52-week high and trades above key moving averages, Relicab Cable’s share price trajectory diverges markedly, underscoring company-specific factors influencing investor sentiment.

Financial metrics such as a modest CAGR in operating profits, limited interest coverage, and high promoter share pledging contribute to the stock’s current valuation environment. Despite positive sales growth in the recent quarter and an attractive ROCE, the decline in profits over the past year has weighed on the stock’s performance.

Conclusion

Relicab Cable Manufacturing’s fall to a 52-week low of Rs.42.5 reflects a combination of market dynamics and company-specific financial factors. The stock’s sustained trading below key moving averages and its significant underperformance relative to the Sensex and sector peers highlight the challenges it currently faces. Investors and market participants will continue to monitor the company’s financial results and market developments as they unfold.

Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →