Relicab Cable Manufacturing Limited

Industrials — Electrical Equipment & Parts · BSE

₹35.00+₹0.01 (+0.03%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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

Company site ↗

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

What does this company do?

Relicab Cable Manufacturing Limited manufactures, markets, and supplies PVC compounds, and wires and cables under the Relicab brand in India.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees47

Annual revenue₹64 Cr

How does it make money?

Turns over ₹64 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 47 employees supports ₹1.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.37 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?Little sign of one

Returns on capital of 14.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

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 +87% while net margin moved -30% 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+87%

Margin effect-30%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 14.1% is adequate but not distinctive
✗ ROCE has fallen by 3.7 points — returns are eroding
✗ EBITDA margin of 7.3% is thin — little cushion if costs rise
✗ Net margin of 2.5% is slim
• Revenue has compounded at 23.2% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

70/ 100

Cheap

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.

Historical Valuation

Current P/E

20.0x

3Y Median

55.2x

40 monthly readings · mean 50.0x · range 18.8x–103.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 64% below its 3y median of 55.2x. 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 77% below the peer median of 88.8x.

vs. its own history

Cheap

55.2x median over 40 months · -64%

vs. sector peers

Cheap

88.8x median of 3 peers · -77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.7x

PEG

2.10

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 17.8% to 14.1% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.5 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 64% 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 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 9.8% to 7.3%. 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 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 17% a year✓ 23.2% CAGR
Latest reported year was 59.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.2x
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✗ -₹2 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

5 / 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

2 good · 7 neutral · 2 weak

Market Cap

₹35 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.38x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.75

Profitable

Profitable on a per-share basis

ROE

12.3%

Moderate

Moderate capital efficiency

ROCE

14.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

59.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-22.2%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.7%

Average

Average margins

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.33

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

35.1 / 35.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹34 Cr	₹38 Cr	₹40 Cr	₹64 Cr	+23.2%
EBITDA	₹3 Cr	₹4 Cr	₹4 Cr	₹5 Cr	+11.6%
EBITDA Margin	9.8%	9.5%	9.9%	7.3%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+9.5%
EPS	₹1.43	₹1.45	₹1.7	₹1.86	+9.2%
ROE	13.2%	13.0%	12.6%	12.3%	—
ROCE	17.8%	18.3%	18.0%	14.1%	—
Total Debt	₹11 Cr	₹11 Cr	₹11 Cr	₹15 Cr	+11.6%
Free Cash Flow	₹4 Cr	₹2 Cr	₹3 Cr	-₹2 Cr	—

🟢 Revenue has grown at 23.2% a year over 3 years.

🟢 EBITDA has grown at 11.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.8% to 7.3% over 3 years (-2.5 pts).

🟢 PAT (Net Profit) has grown at 9.5% a year over 3 years.

🟢 EPS has grown at 9.2% a year over 3 years.

🟡 ROE has held roughly flat at 12.3% over 3 years.

🔴 ROCE has fallen from 17.8% to 14.1% over 3 years (-3.7 pts).

🔴 Total Debt has grown at 11.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹36 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.5%

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 negative4 general

Relicab Cable Manufacturing wins ₹13.33 crore order for control cables

scanx.trade, 25 Jun

Relicab Cable Manufacturing standalone net profit declines 22.22% in the June 2026 quarter

Business Standard, 15 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Cables Penny Stocks in India 2027: 5 Top Picks

Univest, 17 Sept

Aryaman Capital raises stake in Relicab Cable to 10.59%

scanx.trade, 23 Sept

Relicab Cable Manufacturing Li Share Price

Upstox, 05 Apr

Relicab Cable revenue surges 61% in FY26; AGM set for Sept 30

scanx.trade, 02 SeptResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Growth · Risk

WeakBusiness Quality · Profitability

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. 1 high-severity red flag sits 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 ↑