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Brief Information about Company (Investor Point
of view):
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CMP : 47/-
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Equity
Capital & Face Value : 114,27,780 Shares of Rs 10/-Each
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Promoter
‘Holding : 58.16%
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Market
Cap (Cr) : 60.50 Cr
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Listed
on : BSE & NSE
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Turnover
& Profit : 265.02 Cr & 2.70 Cr (2014-15)
122.43 Cr
& 92.25 Lacs
( as on
30.9.2015)
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Debt
Status : 59.55 Cr as
on 30.9.2015
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P/E : 21.27 Industry P/E 25.88
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52 Week
High/Low : 19.65/70.80
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Book
value (Rs) : 93.7
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About Company:
Cords cable is in business of providing cost –effective and
quality solutions for various electrical connectivity requirements. This
company was established in 1987 with an objective of catering to a growing
requirement for high quality customized cables.
The Company Manufactures and sales communication, household
wires LT Range and instrumental cable for domestic and industrial use. The company is governed by a board of
directors that comprises well qualified professionals from engineering &
management disciplines with over thirty years of cutting-edge experience in the
cable industry
The Company Clients includes GAIL, BHEL, L&T, NTPC, Asia
Brown Boveri, Toyo Engineering, Cairn Energy, Siemens, Thermax Tisco, SAIL, ACC, Fuller India ,IOCL,HPCL,
Power Grid, Tata Chemicals, JSPL, Hindalco, NALCO etc
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Product Range
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Control and Electrical Wiring Cables
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Instrumentation ,Signal & Data Cable
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Thermocouple Cables
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Panel Wires
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Household Wires
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EPR Cables
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Cardsol-PV Solar Cable
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Fire Survival Cables
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Low Tension Power Cables
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LV Power Cables
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Fieldbus Cables
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Financial:
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2015-16 (Up to Dec)
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2014-15
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Sales
(In Cr)
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185.80
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265.02
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PAT (In Cr)
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1.41
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2.71
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EPS (Rs.)
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1.23
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2.20
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Cash
Accruals (Cr)
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-
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8.60
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Book Value
(Rs.)
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-
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93.7
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Key Points:
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Book Value of the Company is Rs 93.7
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Debt Reduced from 61.70 Cr ( 2014-15) to 59.55 Cr
in 2015-16 ( Till Sept 2015)
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One Famous Ace Investor Mr Mukul Aggarwal has been allotted 15
Lacs shares on preferential basis at Rs 43/- on Feb 13,2016. Earlier Picks of
Mukul Aggarwal turned as multibeggar was GM Breweries, Modi Naturals, KDDL,
Sunshield Chemicals, Bharat Bijlee, Ion exchange, Intellect Design etc.
- In 2008,Cords cable Industries was listed by
Forbes Magazine in its “ Asia 200 Best Companies under a Billion List” as
only cable manufacture Company in the ASIA Pacific region
- Company Shares trading at a very attractive
valuation with limited downside risk
- Cords Cables also ranked 513th of
world’s top 1000 fast growing company in the year Jan,2012 by
International Business Times.
Future Prospectus
& Strength
Cord Cable is engaged in cable manufacturing
products used in projects hence demand is likely to increase significantly as
Government of India has focused on rapid move up of infra projects and
investment in new projects which will entail higher turnover of the company
which will ultimately increase the profitability of the company.
Further Interest rates are likely to be softening
in near future which will save significantly interest outgoes. Company is also
repaying its Terms Loan Installment timely and debt is reducing which will
ultimately save burden of financial expenses on the company.
Company also booked new order from GE, Welspun,
Bombardier, ABB Global and Alstom Transport.
Weakness/Key Risk:
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Adverse Economic environment around the country and Global Economic Risk
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Recovery of Payments from Its Defaulted Customers
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Increase in Metal Price /Commodity Prices
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Non Control of Administrative Expenses and Low utilization of Capacity
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Rating Agencies CARE has recently downgraded Rating from BBB to BBB-, but
keep it for Investment Grade
Conclusion:
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· Company having a better future prospectus if government
boosts infrastructure initiatite reforms rapidly
· Company having good customers in panel and strong work order approx. 165 Cr in hand to execute
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Good Valuation and Book Value near to Rs 100/- Per Shares
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Least Levarage company i.e Negligible Debts
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Ace Investor Mr.Mukul Aggarwal has picked more than 10% stake
in company recently via preferential allotment with lock in period of One year
which indicates much confidence in Company from investment point of view
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Professional
Management
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A Safe bet
for long term investors with a price target of 175-200 in 1-2 year time frame and a dark horse bet for strong multibeggar
nice article
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