Ultracab (India) Ltd: 246 Cr Sales, 29% Promoter Holding, and a Wire Too Thin?
1. At a Glance
Ultracab India makes wires and cables for everything from your home switchboard to Tata Power’s megaprojects. Sales have zoomed to ₹246 Cr in FY25, profit to ₹9 Cr, but the stock is chilling at ₹10 – cheaper than a Vadapav in Mumbai airport. Why? Because promoters own only 29% (down from 62% two years ago) and the market doesn’t trust a low-skin-in-the-game electrician.
2. Introduction
Think of cables as the nervous system of India’s growth story. From bullet trains to your inverter fan, everything runs on wires. Polycab and KEI are Ambanis of this industry. Ultracab is more like your neighborhood electrician — knows the job, but doesn’t get the glamour.
Founded in 2007 in Gujarat, Ultracab supplies PVC/XLPE power & control cables, solar cables, submersible wires, and even UL-certified international cables. Clients include big names (Adani, ABB, Tata Power), but order book alone doesn’t pay the bills — execution and trust do.
Stock-wise, Ultracab is the small-cap masala: strong sales growth (62% YoY FY25), but shareholder returns -34% in 1 year, -27% in 3 years. It’s like running a marathon but finishing in reverse gear.
3. Business Model (WTF Do They Even Do?)
Revenue mix:
Domestic Cables (House wiring, power, control): Largest chunk.
Special Cables (Solar, Elevator, Ultra triple-protected house wire): Buzzword-heavy but niche demand.
Clientele: Tata Power, ABB, Hindustan Zinc, Voltas. Solid names, but Ultracab’s margins show they’re fighting hard for every rupee.
Essentially, Ultracab runs a manufacturing + project supply business. Local orders dominate, interstate is 44%, exports barely 6%. Meaning — not yet a “global cables” story, more like a domestic contractor with ISO certificates.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
60.1
53.7
72.9
+12.0%
-17.6%
EBITDA (₹ Cr)
3.6
4.2
5.0
-14.3%
-27.8%
PAT (₹ Cr)
1.7
2.1
2.4
-20.2%
-28.9%
EPS (₹)
0.14
0.16
0.19
-12.5%
-26.3%
Annualised EPS (based on Jun’25) = ₹0.56. CMP ₹10 → P/E ~18. If we take FY25 full EPS (₹0.73), P/E = 13.4.
Not expensive. But market says: “Cheap hai, par kiske liye?”
5. Valuation (Fair Value Range Only)
P/E Method: Industry avg P/E 31. With EPS ₹0.73, FV ~₹15–20.
EV/EBITDA: EV ₹152 Cr, EBITDA ~₹19 Cr → 8x. Peers at 20x. FV ~₹14–18.
DCF: With 15% growth, WACC 12%, FV ~₹14–17.
📌 Fair Value Range = ₹14 – ₹20 (Educational only, not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Tata Power Order (2023): ₹22.8 Cr order. Good for credibility.
