Birla Cable (BIRLACABLE)
TurnaroundFairStock Score: 32/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹288.44 |
| Market Cap | ₹865.32 Cr |
| P/E Ratio | 18.73 |
| ROCE | 5.14% |
| ROE | 2.85% |
| Dividend Yield | 0.43% |
| Profit Growth | 2,173.3% |
| Debt/Equity | 0.47 |
| Sales Growth | 51.1% |
| Promoter Holding | 66.35% |
| 52-Week Range | ₹104 — ₹393.95 |
| Sector | Telecom - Equipment & Accessories |
| Book Value | ₹93.63 |
Strengths
- Promoter holding of 66.35% aligns management with minority shareholders.
- Sales growth of 29.60% shows encouraging demand traction.
- Debt/equity of 0.42 is manageable and not excessive.
- Piotroski F-Score of 7/9 suggests improving financial health.
- Profit growth of 159.35% indicates operational recovery from a low base.
Concerns
- P/E of 58.80 is very expensive relative to current earnings.
- ROE of 2.85% and ROCE of 5.14% are far below acceptable return thresholds.
- Latest quarter net margin is under 2% on ₹205 Cr sales, leaving little safety cushion.
- Zero dividend yield offers no income support to shareholders.
AI Analysis
When I examine Birla Cable, I first ask what this business will earn over ten years, not what it earned last quarter. The numbers tell me this is not a simple compounder. Return on equity is just 2.85%, and return on capital employed is 5.14%. Both are far below what I expect from a business with pricing power. A moat? I struggle to find one in telecom equipment, where customers are large telcos and technology shifts quickly. The balance sheet is acceptable, with debt/equity of 0.42, and promoter holding of 66.35% ensures owners have skin in the game. But as Graham would say, price is what you pay, value is what you get. At ₹162.40, the P/E of 58.80 means I am paying nearly fifty-nine rupees for every rupee of current earning power. The market cap of ₹441 Cr is supported by very thin earnings: the latest quarter shows net profit of ₹4 Cr on sales of ₹205 Cr, a margin under 2%. Sales growth of 29.60% and profit growth of 159.35% sound wonderful, but they come off a low base. The 52-week range of ₹104 to ₹308.90 reminds me how volatile this cycle can be. The F-score of 7/9 is a positive sign that fundamentals are healing, and a PEG of 0.62 is attractive only if the high growth persists. I would need more years of improving returns and a lower price before committing capital. For now, this is a possible turnaround, not a stalwart.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer