Marco Cables & Conductors Limited

Sector n/a · NSE

₹51.00₹0.00 (0.00%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

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

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

The 60-second version of Marco Cables & Conductors 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 ₹103 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation.

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

ROCE has stayed above 15% in every year available and stands at 21.7%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +81% while net margin moved -25% 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+81%

Margin effect-25%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

60/ 100

Fair

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

12.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 21.7% 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 Attention2

Return on equity is falling
ROE has dropped from 17.2% to 11.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.3% to 21.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 56% over 3 years, from ₹38 Cr to ₹59 Cr.
🔴High leverageFinancial
Debt/Equity of 1.62x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹17 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.4 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.7% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 15.2% to 11.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 17.2% to 11.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
2 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 16% a year✓ 21.9% CAGR
Latest reported year was -7.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹17 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

2 / 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

1 good · 6 neutral · 4 weak

Market Cap

₹95 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

11.5%

Moderate

Moderate capital efficiency

ROCE

21.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.62x

High

High leverage

Revenue Growth (YoY)

-7.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-19.1%

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

-₹17 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

18.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

29.1 / 30.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹57 Cr	₹72 Cr	₹111 Cr	₹103 Cr	+21.9%
EBITDA	₹9 Cr	₹10 Cr	₹14 Cr	₹12 Cr	+12.0%
EBITDA Margin	15.2%	14.1%	12.1%	11.8%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹5 Cr	₹4 Cr	+10.9%
EPS	₹1.65	₹1.74	₹2.78	—	—
ROE	17.2%	11.3%	16.1%	11.5%	—
ROCE	26.3%	25.0%	33.8%	21.7%	—
Total Debt	₹38 Cr	₹40 Cr	₹36 Cr	₹59 Cr	+16.1%
Free Cash Flow	₹0 Cr	-₹5 Cr	₹10 Cr	-₹17 Cr	—

🟢 Revenue has grown at 21.9% a year over 3 years.

🟢 EBITDA has grown at 12.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.2% to 11.8% over 3 years (-3.4 pts).

🟢 PAT (Net Profit) has grown at 10.9% a year over 3 years.

🔴 ROE has fallen from 17.2% to 11.5% over 3 years (-5.6 pts).

🔴 ROCE has fallen from 26.3% to 21.7% over 3 years (-4.7 pts).

🔴 Total Debt has grown at 16.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹108 Cr

Total Liabilities

₹71 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹16 Cr

Capex

-₹0 Cr

Recent News

1 mixed5 general

Marco Cables & Conductors Ltd

Equitypandit, 20 Feb

Marco Cables & Conductors Reports Audited Standalone Financial Results for FY26

scanx.trade, 15 MayResults

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

Marco Cables & Conductors stock lists at 7.5% premium over IPO price on NSE SME

Moneycontrol.com, 28 Sept

Cables Penny Stocks in India 2027: 5 Top Picks

Univest, 17 Sept

Wired for Success: The Top Cable Stocks to Watch Out for 2024 and Beyond

Equitymaster, 13 Mar

Cable stocks under ₹100 with low PE ratio to look out for

Alice Blue, 08 Mar

Watch Items

Revenue growth is negative (-7.7%) on the latest reported period — check if this is one-off or a trend.
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

MiddlingBusiness Quality · Growth · Valuation

WeakFinancial Health · Profitability · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑