Relicab Cable (539760)

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 109.06% shows strong demand traction in the electrical equipment segment.
• ROCE of 20.34% indicates relatively efficient use of capital.
• Piotroski F-Score of 7/9 suggests broadly sound fundamentals on financial quality checks.
• PEG of 0.35, if growth persists, makes the valuation look less stretched than the raw P/E suggests.

Concerns

• Latest quarter net profit is ₹0 Cr on ₹14 Cr sales, signaling weak earnings quality at the margin.
• P/E of 24.26 and P/B of 8.55 are rich relative to ROE of 11.53% and book value of ₹13.85.
• Profit growth of 29.17% lags sales growth of 109.06%, indicating margin compression.
• No dividend, no promoter holding data, and no debt/equity details reduce transparency for a small-cap investor.

AI Analysis

When I look at Relicab Cable, I see a fast-moving small-cap with a sales chart that catches the eye: revenue up 109.06% in the latest year. At ₹118.40, the stock has run from ₹30.25 to a 52-week high, so the market is already celebrating. I always ask whether the business earns real, sustainable profits behind the growth. Here, the latest quarter shows ₹14 Cr of sales and net profit of ₹0 Cr—that is a red flag. A company that cannot convert even a quarter of strong sales into earnings lacks the earnings quality I demand. The trailing profit growth of 29.17% trails sales growth badly, suggesting margin compression or rising costs. The P/E of 24.26 and P/B of 8.55 look expensive for an ROE of only 11.53% on a book value of ₹13.85. The ROCE of 20.34% is respectable, and a Piotroski score of 7/9 tells me the financial health is not deteriorating. The PEG ratio of 0.35 looks attractive, but it assumes the growth is durable—something recent zero-profit quarters make me doubt. There is no dividend, and debt/equity and promoter holding are not available; for a ₹120 Cr m-cap company, that lack of transparency bothers me. In Graham's language, price is what you pay, value is what you get. Right now, I see growth, but I don't see a margin of safety. I would not buy at this price; I would watch and wait for evidence that Relicab can turn its impressive sales scale into dependable profits.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer