Cords Cable (CORDSCABLE)

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

Key Financials

Strengths

• Reasonable headline valuation: P/E 13.18 and P/B 1.33, with price ₹175.85 against book value ₹131.83.
• ROCE of 16.21% is decent and suggests acceptable capital efficiency.
• Financial health looks manageable: debt/equity 0.58 and Piotroski F-Score 7/9.
• Sales growth of 14.71% shows demand traction, and latest quarterly sales of ₹236 Cr exceed the entire market cap of ₹222 Cr.
• Promoter holding of 52.35% aligns promoters reasonably with minority shareholders.

Concerns

• Profit growth of 5.13% trails sales growth of 14.71%, indicating margin pressure or weak pricing power.
• Latest quarter net profit of ₹5 Cr on sales of ₹236 Cr translates to a very thin net margin of about 2%.
• ROE of 9.65% is modest for a quality compounder; there is no clear evidence of a wide moat.
• Dividend yield of 0.58% offers little immediate cash return to long-term minority holders.

AI Analysis

At ₹175.85, I'm being asked to pay 13.18 times earnings and 1.33 times book for Cords Cable. That is not an expensive price, but price alone is not enough in Graham's world. The business must earn its valuation. Sales grew 14.71%, yet profits grew only 5.13%. That gap is the first thing I notice. The latest quarter makes it even clearer: ₹236 crore of sales produced just ₹5 crore of net profit—roughly a 2% margin. A business can live with thin margins only if it has enormous turnover and pricing stability; here, profit growth lagging sales suggests the opposite: cost pressure or competition eroding every incremental rupee. The balance sheet is manageable. Debt-to-equity of 0.58 is not alarming, and a Piotroski score of 7/9 indicates the company is not severely stressed. ROCE at 16.21% is respectable, but ROE of 9.65% is moderate. As a minority shareholder, I don't get much cash: the dividend yield is just 0.58%. Promoter holding of 52.35% is a decent sign, but it doesn't create a moat. Valuation looks reasonable on the surface. A P/E of 13.18 and P/B of 1.33 leave some margin of safety if the earnings hold. But the stated PEG of 1.33 implies profit growth will improve beyond the trailing 5.13%. I cannot rely on that without evidence. The wide 52-week range—₹127.01 to ₹259.40—tells me this is not a steady compounder; it behaves like a cyclical. For a capital-intensive, low-margin cable business, I would wait for proof that margins are recovering before treating this as a buy. A watchlist, not a conviction position.

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