This electrical cable company delivered over 195% returns in a year; do you hold it?

An investment of Rs 1 lakh in the shares of this company a year ago would have turned to Rs 2.95 lakh today. 

Universal Cables Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last year. During this period, the company’s share price jumped from Rs 138.95 on May 13, 2022, to Rs 410.3 on May 12, 2023, an increase of 195% in the one-year holding period.  

Recent performance highlights 

In the recent quarter Q3FY23, on a consolidated basis, the company’s net profit increased by 356.51% YoY to Rs 11.21 crore as compared to the same quarter last year. The company’s net sales increased by 20.61% YoY to Rs 590.99 crore from Rs 489.98 crore.  

The company is currently trading at a PE of 13.3X against the industry PE of 22.4X. In FY23, the company's ROE and ROCE were 6.17% and 9.44%, respectively. The firm belongs to Group B stocks and has a market valuation of Rs 1,439.86 crore. 

Company Profile 

Universal Cables Limited (UCL) is an Indian company that manufactures and sells a wide range of cables and capacitors. The company was founded in 1962 by the late M.P. Birla and is headquartered in Kolkata, West Bengal. UCL has a network of over 1,000 distributors and dealers across India and exports its products to over 50 countries worldwide. 

Growth Drivers 

UCL's product range includes low voltage, medium voltage, and extra high voltage cables; PVC and rubber insulated power cables; control and instrumentation cables; and speciality rubber cables. The company also manufactures high-voltage capacitors, surge protection capacitors, and automatic power factor correction (APFC) panels. 

Share price movements 

The share of Universal Cables Ltd opened at Rs 391.05 and has touched a high and low of Rs 420.80 and Rs 391.05, respectively. So far 2,362 shares have been traded on the bourses.    

At the time of writing, the shares of Universal Cables Ltd were trading at Rs 415, an increase of 1.15% from the previous day’s closing price of Rs 410.30 on BSE. The stock has a 52-week high and low of Rs 420.80 and Rs 122.85 respectively on BSE.