Dynamic Cables Limited

Industrials — Electrical Equipment & Parts · NSE

₹409.00−₹2.00 (−0.49%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dynamic Cables Limited manufactures and supplies cables and conductors in India and internationally.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees1,077

Annual revenue₹1,197 Cr

How does it make money?

Turns over ₹1,197 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 1,077 employees supports ₹1.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.11 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.5% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +79% while net margin moved +52% 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+79%

Margin effect+52%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.19 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

73/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

21.7x

3Y Median

39.8x

40 monthly readings · mean 40.6x · range 23.5x–61.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 45% below its 3y median of 39.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 76% below the peer median of 88.8x.

vs. its own history

Cheap

39.8x median over 40 months · -45%

vs. sector peers

Cheap

88.8x median of 3 peers · -76%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.4x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.4% to 11.0% over 3 years.
Debt is being paid down
Total debt is down 48% over 3 years.
High return on capital employed
ROCE of 25.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 28.7% to 25.8% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 9.42x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 9.4% to 11.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 48% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 45% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 76% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 9.42x. Interest is payable whether or not the business has a good year.
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.

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

1Revenue growth stays above 16% a year✓ 21.4% CAGR
Latest reported year was 33.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 25.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 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
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹1,982 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.7x

Fair

Fairly valued against the generic band

P/B Ratio

4.33x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.82

Profitable

Profitable on a per-share basis

ROE

18.5%

Strong

Strong capital efficiency

ROCE

25.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.42x

High

High leverage

Revenue Growth (YoY)

33.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

37.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.12%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

10.1%

Average

Average margins

Net Margin

7.1%

Average

Average bottom-line conversion

Current Ratio

2.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

438.0 / 450.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

25.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹668 Cr	₹768 Cr	₹1,025 Cr	₹1,197 Cr	+21.4%
EBITDA	₹63 Cr	₹78 Cr	₹106 Cr	₹131 Cr	+28.0%
EBITDA Margin	9.4%	10.2%	10.3%	11.0%	—
PAT (Net Profit)	₹31 Cr	₹38 Cr	₹65 Cr	₹84 Cr	+39.6%
EPS	₹7.05	₹8.58	₹6.83	₹17.42	+35.2%
ROE	17.5%	17.7%	17.3%	18.5%	—
ROCE	28.7%	30.5%	25.7%	25.8%	—
Total Debt	₹82 Cr	₹119 Cr	₹59 Cr	₹43 Cr	-19.4%
Free Cash Flow	₹14 Cr	-₹20 Cr	₹32 Cr	₹4 Cr	-33.2%

🟢 Revenue has grown at 21.4% a year over 3 years.

🟢 EBITDA has grown at 28.0% a year over 3 years.

🟢 EBITDA Margin has risen from 9.4% to 11.0% over 3 years (+1.6 pts).

🟢 PAT (Net Profit) has grown at 39.6% a year over 3 years.

🟢 EPS has grown at 35.2% a year over 3 years.

🟡 ROE has held roughly flat at 18.5% over 3 years.

🔴 ROCE has fallen from 28.7% to 25.8% over 3 years (-2.9 pts).

🟢 Total Debt has shrunk at 19.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 33.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹683 Cr

Total Liabilities

₹225 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹62 Cr

Capex

-₹57 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.2%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

10 Jul 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

Dynamic Cables Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 26 Aug

Dynamic Cables Share Price News with valuation and peers

Univest, 28 Aug

We Ran A Stock Scan For Earnings Growth And Dynamic Cables (NSE:DYCL) Passed With Ease

Simply Wall Street, 26 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Dynamic Cables (NSE: DYCL) Stock Analysis

Kalkine India, 04 Sept

Dynamic Cables Q1FY27 net profit rises 37% on robust demand

scanx.trade, 15 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare with

Equitymaster, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑