This smallcap power cable stock hits 5% upper circuit. Here's why

The company has 3 manufacturing plants that are situated in Jaipur and Reengus

Shares of Dynamic Cables were locked at 5 percent upper circuit of Rs 457 per share on the BSE on October 11 after the company secured order worth Rs 96 crore from Northern Railways. The S&P BSE Sensex was up 383 points or 0.5 percent to 66,462 levels, as of 1:45 pm.

In the past three months, the stock of this smallcap wire and cable manufacturer shot up 27 percent, as against 1 percent rise in the Sensex benchmark. Earlier, Dynamic Cables shares hit 52-week high of Rs 615 per share on August 7, 2023.

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In an exchange filing on October 11, the company stated that the new work order from Northern Railway entails supply of PVC insulated armored unscreened underground, railway signaling copper conductor cables worth Rs 95.91 crore. The delivery of the said order is scheduled to be within six months.

Commenting on the order win, Ashish Mangal, Managing Director of Dynamic Cables said, "This order reaffirms our dedication to deliver innovative solutions that meet the needs of our customers. We look forward to work closely with Northern Railways to ensure the successful execution of this project and to contribute to the efficient and sustainable operation of the railways network."

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Dynamic Cables is manufacturer of power infra cables that includes LV, HV, MV, EHV, power control and instrumentation cables, and signaling cables. It supplies cables to government discoms, private distribution companies, private EPC contractors, industrial and export clients.

The company has 3 manufacturing plants that are situated in Jaipur and Reengus.

In the June-ended quarter of FY24 (Q1FY24), the company had reported 15 percent year-on-year (YoY) revenue growth to Rs 181 crore from Rs 157 crore, in the year-ago period.

The company’s net profit, meanwhile, surged 57 percent YoY to Rs 11 crore in the Q1FY24 from Rs 7 crore in Q1FY23.