Buy Shilpi Cable; target of Rs 25: Sunidhi Securities

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26 Aug, 2025 12:21

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Sunidhi Securities is bullish on Shilpi Cable and has recommended buy rating on the stock with a target of Rs 25 in its May 21, 2012 research report.

“Incorporated in July 2006, SCTL was formerly known as Rosenberger Shilpi Cable Technologies, which was a 50:50 JV between Shilpi Communications Pvt Ltd and Rosenberger Hochfrequenztechnik GmbH & Co. KG, Germany, to take up the project of Radio Frequency (RF) Cables. The JV partners signed share subscription cum shareholders agreement in July 2006. However, the shares of Rosenberger were acquired by the Indian promoter in 2008 who are the present promoters of the company. The large production plant of SCTL is spread in a considerable area of 10 acres with a work area of 3.5 acres and has a massive monthly production capacity of 1200 Kms. This capacity is expected to rise two-fold in future.  SCTL came out with an IPO of 81 lakh shares at a premium of Rs59 aggregating Rs55.9 crore in March 2011 for expansion project entailing setting up of new capacity for 20,000 kms of cables and wires along with 80,000 Nos of cable assembles at the existing manufacturing unit in Alwar, Rajasthan.”

“Sales during Q4FY12 rose 132.2% to Rs219.5 crore (Rs94.5 crore). PBIDT at Rs20.5 crore (Rs12.3 crore) rose 66.7%. Net profit advanced 200.0% to Rs11.1 crore from Rs3.7 crore in Q4FY11 (YoY).  OPM fell to 9.3% from 13.0% but PAT margin moved up to 5.1% from 3.9% in Q4FY11.  EPS for Q4FY12 stands at Rs3.4 Vs Rs1.5 in Q4FY11.  During FY12, sales rose 51.4% to Rs529.0 crore (Rs349.3 crore). PBIDT at Rs61.7 crore (Rs42.3 crore) rose 45.9%. Net profit rose 76.9% to Rs25.3 crore from Rs14.3 crore in FY11 (YoY).  OPM fell a tad to 11.7% from 19.6% and PAT margin moved up to 4.8% from 4.1% in FY11.  EPS for FY12 stands at Rs7.8 Vs Rs5.9 in FY11. In India, SCTL has been focusing on the increasing distribution network and product basket. With large population, increasing urbanization and disposable income, the industry in which SCTL operate provide sustainable growth on a longer term basis. At the CMP of Rs12.5, the share is trading at a P/E of 1.2x on FY13E and 1.0x on FY14E. We recommend BUY with a target price of Rs25 in the medium-to-short term,” says Sunidhi Securities research report.   

Institutional holding more than 40% in Indian cos

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