Why is Dynamic Cables Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.80 times
2
Healthy long term growth as Operating profit has grown by an annual rate 30.51%
3
The company has declared Positive results for the last 5 consecutive quarters
- PBT LESS OI(Q) At Rs 25.14 cr has Grown at 52.00%
- PAT(Q) At Rs 19.64 cr has Grown at 41.8%
- NET SALES(Q) At Rs 281.56 cr has Grown at 20.25%
4
With ROE of 18.8, it has a Very Attractive valuation with a 3.9 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -31.85%, its profits have risen by 65.2% ; the PEG ratio of the company is 0.3
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.01% over the previous quarter and collectively hold 2.13% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -31.85% returns
How much should you hold?
- Overall Portfolio exposure to Dynamic Cables should be less than 10%
- Overall Portfolio exposure to Cables - Electricals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cables - Electricals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Dynamic Cables for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Dynamic Cables
-31.91%
-0.55
58.46%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
24.07%
EBIT Growth (5y)
30.51%
EBIT to Interest (avg)
4.63
Debt to EBITDA (avg)
1.84
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
2.18
Tax Ratio
24.61%
Dividend Payout Ratio
2.91%
Pledged Shares
0
Institutional Holding
2.13%
ROCE (avg)
21.82%
ROE (avg)
16.86%
Valuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
44
Price to Book Value
3.94
EV to EBIT
15.16
EV to EBITDA
13.71
EV to Capital Employed
3.98
EV to Sales
1.43
PEG Ratio
0.32
Dividend Yield
0.07%
ROCE (Latest)
26.26%
ROE (Latest)
18.82%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
17What is working for the Company
PBT LESS OI(Q)
At Rs 25.14 cr has Grown at 52.00%
PAT(Q)
At Rs 19.64 cr has Grown at 41.8%
NET SALES(Q)
At Rs 281.56 cr has Grown at 20.25%
OPERATING PROFIT TO NET SALES(Q)
Highest at 10.95%
-2What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 1.76 times
Loading Valuation Snapshot...
Here's what is working for Dynamic Cables
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 25.14 cr has Grown at 52.00%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 19.64 cr has Grown at 41.8%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 281.56 cr has Grown at 20.25%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 10.95%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Here's what is not working for Dynamic Cables
Debt-Equity Ratio - Half Yearly
Highest at 1.76 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






