DCG Cables & Wires Limited

Sector n/a · NSE

₹139.65+₹1.05 (+0.76%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

The 60-second version of DCG Cables & Wires Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹128 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 17.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +134% while net margin moved +101% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+134%

Margin effect+101%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

17.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 6.3% to 12.9% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Revenue growth is slowing
The last 3 years compounded at 32.8%, below the 46.5% longer-term rate.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 90% over 3 years, from ₹19 Cr to ₹36 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 468% against revenue up 134% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.3% to 12.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth is decelerating
The recent stretch has compounded slower than the longer-term rate. Multiples usually compress with the growth rate rather than the absolute level of profit.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 35% a year✓ 46.5% CAGR
Latest reported year was 26.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹56 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 14%✓ 17.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹253 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

10.2%

Moderate

Moderate capital efficiency

ROCE

17.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

26.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-8.4%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹56 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

16.2%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

73.6 / 67.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.8

Neutral momentum

Financial Trend (5-Year)

Metric	FY22	FY23	FY24	FY24	FY25	3Y CAGR	4Y CAGR
Revenue	₹28 Cr	₹55 Cr	—	₹101 Cr	₹128 Cr	+32.8%	+46.5%
EBITDA	₹1 Cr	₹3 Cr	—	₹16 Cr	₹16 Cr	+68.1%	+110.3%
EBITDA Margin	3.0%	6.3%	—	15.8%	12.9%	—	—
PAT (Net Profit)	₹0 Cr	₹2 Cr	—	₹9 Cr	₹8 Cr	+67.6%	+116.1%
EPS	₹0.2	₹0.95	—	₹4.88	—	—	—
ROE	—	11.2%	—	36.8%	10.2%	—	—
ROCE	—	17.1%	—	49.8%	17.3%	—	—
Total Debt	—	₹19 Cr	₹26 Cr	₹26 Cr	₹36 Cr	+23.9%	+23.9%
Free Cash Flow	-₹9 Cr	-₹21 Cr	—	-₹3 Cr	-₹56 Cr	—	—

🟢 Revenue has grown at 46.5% a year over 4 years.

🟢 EBITDA has grown at 110.3% a year over 4 years.

🟢 EBITDA Margin has risen from 3.0% to 12.9% over 3 years (+9.8 pts).

🟢 PAT (Net Profit) has grown at 116.1% a year over 4 years.

🟡 ROE has held roughly flat at 10.2% over 3 years.

🟡 ROCE has held roughly flat at 17.3% over 3 years.

🔴 Total Debt has grown at 23.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹121 Cr

Total Liabilities

₹42 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹33 Cr

Recent News

1 mixed1 negative4 general

DCG Cables & Wires Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Here's Why We Think DCG Cables & Wires (NSE:DCG) Might Deserve Your Attention Today

Simply Wall Street, 03 Sept

DCG CABLES & WIRES LTD Share Price

Upstox, 05 May

DCG Cables & Wires Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

DCG Cables & Wires seeks NSE fine waiver over clerical filing error

scanx.trade, 28 JulRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

DCG Cables & Wires Share Price Falls 8.7%, Analysis

Univest, 15 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑