At a Glance

Cords Cable Industries (CCIL) just delivered Q1 FY26 numbers that were… fine, but Mr. Market decided to faint anyway. Revenue stood at ₹225.7 crore (+30% YoY), with PAT at ₹3.9 crore (+34% YoY). Despite this, the stock tumbled 8.5% to ₹187 because, apparently, investors were expecting wires to carry profits, not just current.

Introduction

Founded in 1991, Cords Cable is India’s unsung hero in industrial cabling – making the stuff that keeps refineries, power plants, and process industries alive (and not on fire). The company caters to niche instrumentation and special cables rather than mass consumer wires.

The big question: Is this a growth story under construction or just another high-voltage stock waiting to short circuit?

Business Model (WTF Do They Even Do?)

CCIL manufactures:

• Instrumentation Cables – for power & process industries.
• Control & Thermocouple Cables – for industrial automation.
• Specialized Cables – customized solutions for refineries and plants.

Sales largely depend on capex cycles of oil & gas, power, and industrial customers. Unlike retail cable brands, CCIL thrives (or dies) with project pipelines.

Financials Overview

Q1 FY26 Highlights:

• Revenue: ₹225.7 Cr (+30.5% YoY)
• Operating Profit: ₹13.6 Cr (OPM 6.0%)
• Net Profit: ₹3.9 Cr (+34% YoY)
• EPS: ₹2.99

FY25 Performance:

• Revenue: ₹795 Cr (+26% YoY)
• PAT: ₹15.7 Cr (+56% YoY)
• OPM: 6%
• EPS: ₹12.1

Margins remain under pressure due to rising raw material costs and high borrowing costs (interest ₹25 Cr annually!).

Valuation

• P/E: 15.4 (reasonable vs peers)
• P/B: 1.33
• ROE: 8.3%

Fair Value Calculation:

1. P/E Method: EPS FY26E ~₹13–14; fair P/E 12–15 → ₹156–₹210
2. EV/EBITDA: Adjusted EV/EBITDA ~6x, fair range ₹180–₹200
3. DCF: Limited visibility; capex/debt heavy.

Fair Value Range: ₹160–₹200 (current ₹187 is near upper band pre-drop)

What’s Cooking – News, Triggers, Drama

• Q1 Results: Healthy growth, but market expected better margins.
• AGM on Sept 29: Dividend proposal in play.
• New Independent Director: Governance boost.
• Trigger: Industrial demand revival, oil & gas capex.
• Risk: Contingent liabilities ₹120 Cr (not small).

Balance Sheet

Observation: Leverage is high, but manageable – as long as margins don’t fall off a cliff.

Cash Flow – Sab Number Game Hai

Commentary: Cash flows are tight; working capital is a sponge soaking liquidity.

Ratios – Sexy or Stressy?

Verdict: Moderate returns, high debt – not sexy, but not ugly either.

P&L Breakdown – Show Me the Money

Comment: Revenue growing fast, profits catching up slowly.

Peer Comparison

Roast: Cords trades cheap for a reason – it’s the David in a world full of Goliaths.

Miscellaneous – Shareholding, Promoters

• Promoters: 51.9% (steady)
• FIIs: 1.3%
• Public: 46.7%
• Buzz: Dividend likely to be approved.

EduInvesting Verdict™

Cords Cable delivered strong revenue growth but thin margins and high debt keep it grounded. The 8.5% price drop seems like an overreaction but also a reminder that the stock isn’t risk-free.

SWOT

• Strengths: Niche industrial cables, steady growth, promoter skin in the game.
• Weaknesses: High debt, low interest coverage, small scale.
• Opportunities: Industrial and oil & gas demand surge.
• Threats: Raw material volatility, contingent liabilities.

Final Word: At ₹187, the stock sits close to fair value. Attractive only if you believe in industrial capex boom – otherwise, it’s just another wire waiting to be tripped.

Written by EduInvesting Team | 31 July 2025
SEO Tags: Cords Cable, Industrial Cables, Power Infrastructure Stocks