The shares of the Penny stock company, specializing in manufacturing and supplying a wide range of wires, cables, and conductors, jumped upto 13 percent upon receiving two Letters of Intent for the supply of conductors
With a market capitalization of Rs. 80.41 crores on Tuesday, the shares of Marco Cables & Conductors Limited jumped upto 13.2 percent, making a high of Rs. 47.5 per share compared to its previous closing price of Rs. 41.95 per share.
Marco Cables & Conductors Limited, engaged in manufacturing and supplying a wide range of wires, cables, and conductors, has received two Letters of Intent from a reputed client in the cable industry for the supply of conductors.
The first LOI is valued at Rs. 3.94 crore for the supply of conductors, and the second is for assorted sizes of conductors worth Rs. 10.79 crore. Together, these orders amount to a total value of Rs. 14.73 crore, reflecting significant new business for the company.
Financials & Others
The company’s revenue rose by 23.5 percent from Rs. 51 crore to Rs. 63 crore in H2FY24-25. Meanwhile, the Net Profit stood the same at Rs. 2 crore for both periods.
The company’s P/E ratio of 15.09 is much lower than the industry average of 44.29, and its PEG ratio of 0.21 indicates potential undervaluation. With promoter shareholding above 65% and an impressive average three-year net profit growth of 108.52%, the company shows strong financial performance and stability.
Marco Cables Ltd. is recognized with over 33 years of experience in the power cable industry, is credited with identifying business opportunities that have set the company on a strong growth path. The operations were initially started with the manufacturing of wires using aluminium and copper conductors, as well as XLPE/PVC cables and aerial bunched cables. Over time, the product range was expanded to include AAAC (All Aluminium Alloy Conductor) and ACSR (Aluminium Conductor Steel Reinforced) conductors.
The products have been supplied to major electricity boards and turnkey contractors across India, covering the entire range of voltage and transmission lines up to 1.1 KV, and the manufacturing units are located at Sinnar, Nasik (Maharashtra), with an annual production capacity of 18,000 km in assorted sizes.
The company has a set of marquee clients as follows: Ashoka Buildcon Limited, Bajaj Electricals, Bharat Electricals, BVG India Limited, NCC Limited, GETCO, GVPR Engineers Limited, Larsen & Toubro, and others.
Written by Sridhar J
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