JD Cables (544524)

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

Key Financials

Strengths

• ROCE of 65.58% indicates exceptional capital efficiency and a potential competitive edge.
• Sales growth of 12.82% and profit growth of 15.71% show consistent, profitable expansion.
• Piotroski F-Score of 7/9 points to sound financial health and earnings quality.
• P/E of 16.04 and PEG of 1.12 offer reasonable valuation for moderate growth.
• Latest quarter net margin around 9.9% (₹12 Cr profit on ₹121 Cr sales) is respectable.

Concerns

• No dividend; shareholder returns depend entirely on reinvestment and share price appreciation.
• Missing book value, ROE, debt/equity and promoter holding data limit a full quality and governance assessment.
• Latest quarter annualized profit (~₹48 Cr) is roughly double the trailing earnings implied by the P/E (~₹24 Cr), raising sustainability doubts.
• Small-cap cable industry is competitive; high ROCE may face pressure from input costs or pricing.

AI Analysis

JD Cables is a small, capital-efficient cable maker. At ₹168.10, the market capital is ₹379 Cr and the trailing P/E is 16.04. With sales growth of 12.82% and profit growth of 15.71%, this is not a screaming bargain, but it is a reasonably priced compounder. ROCE of 65.58% is remarkable; it suggests the company can earn high returns on reinvested capital, a key trait I look for. The Piotroski F-Score of 7 out of 9 adds confidence: profits are not just accounting noise, and the balance sheet seems sound. Latest quarter sales of ₹121 Cr and net profit of ₹12 Cr imply an approximate 10% net margin, respectable in the cables business. The PEG of 1.12 tells me growth is fairly valued. But I cannot fully embrace what I cannot measure. There is no dividend, so my return depends on management reinvesting wisely. Book value, ROE, debt/equity and promoter holding are all missing; for a company of this size, I need those numbers before making a serious commitment. Also, the latest quarter annualizes to nearly ₹48 Cr profit, while the stated P/E implies only about ₹24 Cr of trailing earnings; such a jump needs explanation. Is the order book real? Can ROCE stay above 60%? I would want to see a few more quarters, steady margins, and a clear promoter stake. If JD Cables delivers on growth and keeps returns high, the current price offers a decent margin of safety. But prudent investing means demanding transparency. This is a 'show me more' situation.

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